19 | 5k | Good Credit - Where do I start?

92 Replies

@Caleb Heimsoth

Ooh, so a REIT is a share/stock that's traded publically on a stock exchange/stock market? Would it also bring in monthly payments for the number of shares you own in the REIT like a passive income or would it be a buy/sell type of income?

I'm reading it on | https://www.investor.gov/introduction-investing/ba...

it seems like a great investment if this happens to be what your referencing. If it is, do you know somewhere that I could find a reliable broker for investing into these?

(Also if it's not too much to ask could you explain to me what syndication is? Thanks!)

Originally posted by @Christopher Raiz :

@Caleb Heimsoth

Ooh, so a REIT is a share/stock that's traded publically on a stock exchange/stock market? Would it also bring in monthly payments for the number of shares you own in the REIT like a passive income or would it be a buy/sell type of income?

I'm reading it on | https://www.investor.gov/introduction-investing/ba...

it seems like a great investment if this happens to be what your referencing. If it is, do you know somewhere that I could find a reliable broker for investing into these?

(Also if it's not too much to ask could you explain to me what syndication is? Thanks!)

Just shoot me a message I’ll explain best I can and give some recommendations.  it’s easier to respond there then on the forums 

@Christopher Raiz now is a fantastic time to just learn. 

The market may or may not begin to dip but no one is arguing that we are at or near the bottom of the cycle. So I think you have very little to lose by just taking this time to get an education. At 19 with no experience, I'd probably just sit out the next 2-3 years and learn as much as you possibly can via a mentor, books, podcasts, etc.

@Will Gaston Hey! Thanks for the advice!

I was wondering when the cycle reaches the bottom but near the rise is that when people should buy into real estate because of its low prices?

I would finish college and maybe learn some trades so that the real estate you buy you can also repair. After you save up 20-40k you might be able to buy a home with cash in a not so bad area.

Check out the Chicago Creative Investors association. They meet in Lombard at the Embassy Suites on the third Sunday.

@Christopher Raiz

Congrats to you for setting yourself up for success!You’ve already got some great advice here, so simply put:

1-Learn everything you can and keep learning! (You’re in the right place, lol.)

2- Know your market, where’s its been, looks like it’s going, and what’s doing well there.

3- Get a long-term plan in place for your portfolio (its allowed to change), but that will help you with a direction.

4- Personally, I’ve always liked the idea of house hacking (But 2 and 3 above really come into play there.)

Good luck! I’m sure if you’re doing this well at 19, you’ll continue to do so! :)

I know my thinking may be a little unconventional. One thing that I havent seen suggested is that you can use your location to your advantage. Real Estate is cheaper and provides a better return in your area then some other parts of the country. Be the boots on the ground. Find deals in your area and bring them to the forefront.  You may be able to find an opportunity to house hack with the help of an investor. Maybe a duplex/triplex/fourplex. Might not be for everybody but could attract the right investor... 

Keep your 5000 in the bank.  Read the Richest Man in Babylon and do what it says.  

Get a job working for a property management company.  Doing anything.   Just learn, get to know the decision makers and how the work gets done.      

In 2 years you'll know more than everyone you've already talked to.  In 10 you'll be richer than them.  

Good Luck 

@Rob Hoffman I'm really glad to hear that. A lot of people have been moving into my local area that I've been noticing and I feel like it's a golden opportunity as of right now. I hear a lot about this house hacking and I'm very interested in it if you could tell me a little bit more that'd be great! If not thank you for your advice on my area! I'll look into investors around the area.

@Jack Moran I currently work at a law firm full time and go to college part time so I'm going for a weekend job and any job that will work around my full time schedule when I don't have classes those days. Do you know any positions that I should apply for that would give me the most experience? I'm considering even working for free if it comes to that because right now I just need the knowledge and experience under my belt.

@Christopher Raiz Love the ambition. Maintain that and let it drive you to learn more. I would definitely find a mentor and ask as many questions as you can. It would be great if your mentor is working on a project so you can see first hand what they're doing. Follow some investors on other social media platforms too. I follow quite a few on Instagram and they give really good advice and even do live videos/Q&A. It's great that you've started saving, keep saving more as you begin to learn from your mentor and the BP community.

I started at 19 as well (37 now).  In my area (Bay Area, CA) $5k doesn't buy much but it is plenty to become a well informed, well educated, and well certificated professional.  I started with my local rental housing association who offers classes on a whole host of real estate topics.  Through them I became a certified property manager.  I immediately knew more about the rules of property management than many people who were working in the industry and I was up on the most current info.   Those classes were in the evenings and I see they are currently charging $1,100.00.

Years later I obtained my real estate license through online and in person classes which again I did in the evenings and weekends.  I doubt they even me cost $500.00.  This opens all sorts of doors into making decent money, meeting people who are in the business, and generally knowing more and more about the industry.

After years of working on my own property I also picked up my general contractor license for $240.00.  This again is another avenue for income and knowledge.

With these sorts of tools at your disposal you can really do most things in real estate.  Once you really dig in you will find a focus that will work best for you, and you can run with it. 

TLDR: get educated now, buy & hold or flip or make deals when you know what you are doing 

@Christopher Raiz

So one option you have is an FHA loan. They have some strict guidelines but only require a 3.5% down payment with a low interest rate. You have to live in the house a year before you can move. In that year you could rent out the bedrooms to friends and have your mortgage covered, or almost covered. After that first year you can do it all again but for 5% down payment and then again for a 10% down payment. Great way to house hack and build up your portfolio starting off

Learn your market and learn how to market.  5k isn't anything in this but being 19 and starting now is an advantage over most.  You could make your fortune by 30 years old if you make a lot of smart decisions and stay focused.  

Originally posted by @Christopher Raiz :

@Jay Hinrichs  

I'll keep that in mind when out in the field! Been trying to figure out a good way to be able to gather connections from each field of work involving real estate on a personal level and this certainly sounds like one of the best! 

Thank you!

@Christopher Raiz i see that u commented a few times about making connections. Search for local meetups in ur area via BP. There is an entire forum dedicated to local meetups. Thats how i made most of my best connections! Good Luck and hope to see you around! 

@Christopher Raiz  

Agree with the education, meet-up, credential building advice listed above.


I would also advise trying to find a way, and way, to make more money.
  • You said you work at a law firm, ask for a raise there (it will help if you can demonstrate that you've done good work for two years). 
  • Start something on the side. I have started an e-commerce business that helps to pay the bills and have found additional ways of making 1-2k here and there 
  • Look for another job: The job market is the tightest it's been in over a decade, people are desperate for talent, especially motivated talent that will help make their lives easier. 


To sum it up, work hard, add value, learn as much as possible, and "stack cash" in any way you can. That will be the lighter fluid for growing your RE portfolio. 

I am in a somewhat similar situation. I am an 18 year college student with a decent credit score but with limited funds. I plan to start an wholesaling LLC and just go for it. Good thing about us starting young is its fine if we make mistake as time is on our side. I know that I have to get started and not be scared because in life regret is always worse than failure.

@Miguel Castillo I'm interested in buying and holding with selling eventually, flipping and wholesaling I'm very unfamiliar with; I'll have to research more into the whole concepts of those types of real estate. If you have any general advice on any of them I'd love to hear it! 

@Amauri Martinez Thank you for the advice! I'll be sure to find a mentor and a place to learn and if you know any great investors to follow on instagram/snapchat I'd love to know to see what I can learn from them!

@Joe Silva I'll look into the local rental housing association, it seems like I'd benefit a lot it from what I'm hearing! I'll be sure to get my license ASAP, do you know if it varies from state to state or if I'll be able to make purchases across the country with it? The general contractor license is something I'll plan for down the road once I'm well educated in the real estate business. Thank you for your advice, I really appreciate it!

@Garrett Leahigh This seems brilliant, I love it. I've been trying to figure out a way that I'd be able to finance something consider my young credit and little experience in the industry. From what I'm hearing this seems like my most viable option; thank you for giving me this information!

@Ian Walsh Hey, do you have any tips on learning the market around me? I'll be working on the aurora/oswego/naperville area and learning the market is something I'm not very familiar with how to go about so any tips and information would help! 

Thanks!

@Shara Carlton Thank you for informing me of the local meet-ups in my area page! I'll be sure to make some great connections! 

Good luck and thanks again for the tips!

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