San Diego, CA · Member since 2018 · 46 posts · 23 votes
Hey everyone! I’ve recently been stumped on this specific concept and hoping to get a few pointers from some successors. I absolutely love the idea of buy and hold real estate investment properties but I am a 19 year old college student with low finance. I just need to know if it’s possible considering my circumstances or if I should wait. I also just started reading “investing in real estate with no and low money down” by bigget pockets and have finished other books on real estate. Very excited to continue. Should I wait? Is it not my time? Is it still possible for me to create a niche through strategy? All and any help would be greatly appreciated!
-stevie
Good on you for thinking, studying and reading about REI so young, nice work!
I don't think age is ever a factor, but knowledge and self control will dictate everything. If I were in your shoes, I'd save up as much as I can until I have around 3.5% of whatever it is I'm looking to buy (I'd suggest a duplex, or a house you can rent to a bunch of buddies and you live in one room). In my area, I could get a starter 3 Bed home for $235k and rent out each room for $750. My mortgage (Principal & Interest) + Taxes & Insurance (Read "PITI") would be about $1500 with 3.5% down, so I'd be living rent free. Roughly the same numbers for a duplex, one side pays roughly the PITI and the other side you live in for super cheap or free, maybe even get paid to live there!
Keep on reading and studying. Save money. Stay Curious.
Flipper/Rehabber · Greensboro, NC · Member since 2010 · 623 posts · 615 votes
8y
@Stevie Delacruz You're never too young to start investing. In fact if you wait, you'll be kicking yourself about all the opportunities and growth potential you missed.
Rental Property Investor · Tulsa, OK · Member since 2016 · 50 posts · 38 votes
8y
@Stevie Delacruz consider the time value of money when investing. Putting investing off in your earlier years is never justifiable from a mathmatical perspective because of compound interest. The potential growth you will see is the highest it will ever be now, each year that passes by, potential growth becomes less because of the time value of money. The more disciplined you are now in figuring this out and taking action the more wealthy you will become. That’s how the math works. Good luck!
Specialist · Toronto, Ontario · Member since 2016 · 564 posts · 425 votes
8y
I bought my first property at 18 years old and rented it by the room.
FHA loans didn't exist here, so the best I was able to get was 10% down. Bought a house for $302,000 in 2007. I had saved more than $30,000 by the time I was 18 though, worked hard jobs from 12 years old on, and saved. Also finished high school at 15 and went to China to teach English for two years and saved quite a bit.
You can start young, but don't expect anyone, even a family member, to lend you money to invest if you can't show you are capable of saving some for yourself.
Harrisburg, SD · Member since 2017 · 8 posts · 8 votes
8y
1. Easy: I am a bit of a reader, so my advice, since you are only 19 is to get a library card and hit the books. Grab books by Suze Orman, Dave Ramsey, Robert Kiyosaki, Jim Cramer, Warren Buffet, and Donal Trump. I can't remember the authors, but "Millionaire Real Estate Investor" and anything with real estate in the title. Use these books as an approach to build your wealth. They will give you guides into how to build a real estate empire and provide insights on how to become wealthy.
2. Harder: Find a mentor (Be humble, patient and polite .... work hard for them because ultimately you have to offer them something in return) Everyone gets asked to be a mentor, but the mentor needs to get something out of the deal. Very few people who ask for a mentor think about the person across from them "because they made their money already." Also, very few people want to be truly mentored. Listen to their criticism and be patient with everything.
3. Hardest: Use all of those two things above and jump. Just start and work your plan, eventually things will work out.
My personal plan: I am conservative, I don't like debt and so "other peoples money" is a bad idea in my mind. (other people here know how to do it and maybe this is more you...you aren't wrong, just know what the risks are). So first I got out of debt and live on less than I make. (I think of it like this ... every dollar I don't spend on is a tool to be invested) I am building a taxable mutual fund portfolio (I think of this as my personal bank) that will buy properties 1 at a time. I am comfortable with mutual funds, personally I have had great returns and know where to put my money (again I know the risks and know what I am doing, these may not be for you... so read and do number 1 and 2). Also the bar for investing in those is largely $3,000.00 or less. Once that account gets big enough. I am going to just going to buy 1 property and take its profits into the fund and keep loading it to buy the second, and the third and so on. I understand I will be viewed as an idiot for those who want to be rich by 30. I get that I may not appeal to you, but it is my plan and it has been working. With that in mind I figure I only need 5-10 doors and that full taxable fund and then ... I retire. That taxable fund with that number of doors will create a self sustaining property monster that can buy 1-2 properties per year.
Good Luck! Also, no you are never to young to invest, but you just may not be perfect or special like your mom told you.
Wholesaler · Columbia , SC · Member since 2017 · 20 posts · 4 votes
8y
Whats up man, I'm 24. DO NOT WAIT. Taking action will be the true way of gaining tremendous experience.
ATTEND your local REI meetings.
Read and gain knowledge on your school breaks. Holiday breaks, Spring Breaks, Any days that are consider a "break".
Grab a mentor. Once they see your work ethic, they will be more than happy to help you out.
****, I'm down to help you if you need it. Just DM me.
Start with wholesaling, which is the usual and see if you like it.
I am 24 and I have a real estate team to help me wholesale SFHs and wanted to get into the Multifamily space. Wanting to do so, I created a team and we are sending properties ranging from 50+units all the way to 100+ to other syndicators for a fee. I soon will be helping one of my buyers raise capital for an apartment deal once finalized and under contract.
You can do this!! Get going and don't look back my friend. ;)
Property Manager · Jacksonville, FL · Member since 2018 · 514 posts · 470 votes
8y
@Stevie Delacruz Amazing that you're already thinking about this at age 19!! It's never too young, I think. I'm 30 and wish I had thought of this sooner. Take a look at this article: https://www.biggerpockets.com/renewsblog/house-hacking-la-full-time-student/
Realtor · Philadelphia, PA · Member since 2018 · 10 posts · 4 votes
8y
@Stevie Delacruz I don't know if this has been mentioned yet, but what about graduate students who can't make an income and have debt? I'm guessing there's not much opportunity there?
Raleigh, NC · Member since 2017 · 347 posts · 94 votes
8y
It's never too early to learn but I wouldn't buy anything just yet. Cause they will pull your credit score so you need to have a semi decent credit, also they will want % down, you will probably have to declare how much income you have per year and they usually like to see 2 years of stable employment
San Diego, CA · Member since 2018 · 46 posts · 23 votes
8y
@James Ma I do cherish the fact that I’m young but it bums me out that I dont know these basic things like finding out how to get money. There are MANY ways and I haven’t even implemented 1 in my life. I’ll sure be working towards getting money and learning more about real estate investing. Thank you!
San Diego, CA · Member since 2018 · 46 posts · 23 votes
8y
@Luc Boiron that’s true. Thats the factor that makes me hesitant. Asking from others especially when I’m not that competent yet. I feel my best option, as others had mentioned, is to find ways tomake money and fully engage in real estate investing meets, events, etc. Thanks!
San Diego, CA · Member since 2018 · 46 posts · 23 votes
8y
@Phl Olinger that actually sounds very cool. Its awesome to see you’re having great success. I appreciate the comment and I love seeing how others started and how they invest. Believe me, I’ve been fortunate enough to know I’m not special lol
San Diego, CA · Member since 2018 · 46 posts · 23 votes
8y
@Dakarai Towns Thank you very much! I read as much as I can even in between classes. Writing in books, taking notes, memorizing. I would greatly appreciate your help but I’m completely inexperienced so I wouldn’t want to be a burden on you. If theres any way I can simultaneously be returning the favor, please let me know
Real Estate Agent · Tulsa, OK · Member since 2016 · 98 posts · 60 votes
8y
The best time to plant a tree is 20 years ago. The second best time to plant a tree is now.
Or something like that.
I bought my first investment property when I was 16 years old. It had all kinds of unexpected turns and twist but I have zero regret from it. Although I was not mentally mature or "ready" for what lay ahead I got it done.6 years later me and my brother sold it and pocketed $25,000 a piece.
I say this to suggest that your age won't matter nor your finances as long as you take on a property that is truly a good deal with profit potential. The deal doesn't care about your age. If you buy a good deal at 16 or 45 then it will be good. If you buy a bad deal, regardless of age, it is going to suck.
Fear not only tells you what to do, but when to do it.
Warman, SK · Member since 2018 · 7 posts · 4 votes
8y
@Stevie Delacruz I wish I would have started at 19.
I once read a quote that really stuck with me, and I think it directly applies to your situation.
"Don't think you can't do anything. Instead, figure out how you can do it."
That's what separates the boys from the men in my opinion. It's never too early to invest. All you need to do is find a way to do it. With the amount of research and reading you've done, I have no doubt that you'll find a way.
As a few others have said, a since you don't have a lot of money to put toward a deal, I'd also suggest offering your time. Even if you don't get an entire deal for yourself, the experience is very valuable.
Specialist · Easton, PA · Member since 2018 · 136 posts · 48 votes
8y
Stevie, I recommend that once you get a job (even part time as a student), you open up a self directed Roth IRA (I use CamaPlan). Put as much into it as you can (up to $5,500/year). You can make investments through the IRA. Then, you can also pull out the principle tax free (you already paid the tax on it) and penalty free (principle only, not growth) to start your business. Continue to invest in both vehicles. Cama and other SDIRA custodians offer various videos on their websites (you can often access without having an account there) that can give you some investment ideas that do not require a lot of money.
Attend REI groups through Meetup. Maybe start a college real estate investing club. Find a mentor, offer to help them in exchange for learning from them. While we all have some fear of losing or failing, look at it this way, instead: I either win/succeed or I learn. While I've made money in various RE investments, I've made mistakes in each of them. I could have earned more money or lessened my risk if I knew more. However, I now know more and I won't make those mistakes again and I will be more profitable going forward. I've actually both won and learned.
Burnaby, BC · Member since 2017 · 282 posts · 268 votes
8y
@Stevie Delacruz getting money is not easy for most people at all. I know plenty of people who make 6 figure salaries and don't have any money to invest. You're young so you have time, the hardest part is always the beginning
San Diego, CA · Member since 2018 · 46 posts · 23 votes
8y
@Elenis C. I’ve actually read that article and I love the idea of that. I think I’m gonna first start with raising capital and learning more. Would love to house hack tho
San Diego, CA · Member since 2018 · 46 posts · 23 votes
8y
@Corbin Marcotte It’s not the deals im so worried about. It’s more of the capital that is needed to jump start my career in real estate investing. That’s awesome that you had that successful deal at that age but I would have to first start saving a good amount
San Diego, CA · Member since 2018 · 46 posts · 23 votes
8y
@Adam Duh I love that. Thank you! I would absolutely offer my time if that means I’m growing in some area. It could be networking, recieving information, see the do’s and don’ts of rei. I just have to find these oppurtunities and really push forward with them
Ironton, OH · Member since 2015 · 104 posts · 31 votes
8y
Stevie! I'm 24 and wish I would have started my RE investing career sooner. My husband and I both say we would have loved to house hack before we had children. (Not that you can't with children) Start building relationships with local banks and see which ones have experience facilitating an FHA loan so you can get into the deal for as low as 3.5% down. You do have to be an owner occupant and have a 580 FICO score or above. You may also be able to do the BRRR strategy if you can find a private money partner. If you don't know of anyone that has that much cash laying around, you may know of someone that owns a house. That said person may have enough equity to fund the deal. I think I read the other day that 30% of US homes are paid off.
If you still don't have the funds, keep reading and educating yourself. Once I made the decision I was going to invest in real estate I started with episode one of the Bigger Pockets Podcast and listened to all of them from there. Also read as many books as possible! You're on the right track, just keep educating yourself and don't go into consumer debt! I suggest reading Scott Trench's book 'Set For Life' and the Bigger Pockets Money Podcast.
San Diego, CA · Member since 2018 · 46 posts · 23 votes
8y
@Joe Tomko very valuable information. I still don’t understand the stuff that was said in the first paragraph. I have yet to learn all these business factors that correlate to rei. I will look over all these in the near future and review them so thank you for your comment!
San Diego, CA · Member since 2018 · 46 posts · 23 votes
8y
@James Ma the funny thing is, I love the fact that I’m at the beginning because this is where I become very curious and face the callenges of starting. It sucks vut at the dame time I’m enjoying the process. I’ve just never felt more dumb in any subject than this lol