@Brian Babbage Hey! Thank you for your advice I'll be sure to ask for a raise here to be able to grow my real estate career. I was wondering about the e-commerce business that you do if you could teach me a little bit about it and what has worked for you and how you made it successful! I'll be checking around for another job in the real estate business to get some hands-on experience with how it works and learn as much as I can from there. Thank you again for the great advice and anything you'd like to tell me about your e-commerce business I'd love to hear!
@Markens Chateau Agreed, I'm wishing you the best man! I'm sure you'll do absolutely fantastic whilst having all the time in the world to build something that you will be proud of! Don't give up and let me know how it goes for you, I'd love to hear!
@Christopher Raiz I'll shoot you a DM about the e-commerce biz. Unfortunately the landscape today makes this an incredibly difficult market to get into, especially if you do not have a background in internet marketing/product sourcing/sales.
@Christopher Raiz I'm in Aurora too, we can schedule a call. Send me your #
Build your educational know how. There are many of us who are in the same similar stages of growth to our real estate goals. You have come to the right place to learn. Asking questions is the 1st step. Next you want to learn the terms and understanding the process of strategies you plan to implement. Your age is so advantageous to you. You are at a time in your life where an apprenticeship with an investor or investment group would do you worlds of good. Learn as you work hard for seasoned professionals successful in the business. By the age of 26 you will be a veteran with your own thriving company and have an extremely wonderful life. Its a marathon and not a sprint. Do not go in trying to get rich by next month. Read the material given. Pay attention to the forums. Always listen or watch the podcasts. Start from show 1 and work your way all the way up. Take notes. Write out your plans and go over them daily. Have set goals with due dates on a quarterly basis. Accomplish those and move on to the next quarter goals. Next thing you know, success!!
I would first and foremost recommend looking for a mentor in your area. Being able to find a trustworthy partner in your area with some experience can be a major boost to your learning and net worth. However, I would also recommend possibly looking into getting your real estate license. It opens up the opportunities for what you can do and how much you can make in this business.
If I were in your shoes, I'd consider these options:
- Real Estate License: As other people mentioned, you would make great connections and learn the basics about real estate transactions and laws. The investment in time/money for this is so low theres really no reason not to do it.
- Construction: I don't have much construction experience myself but I wish I did. Almost every strategy has some aspect of construction involved and it wouldn't hurt to have a little experience here.
Take action to learn while earning. Eventually you will invest when you find the oppurtuntiy and hopefully you'll have more funds when that time arrives.
Learn how to build your credit first and understand how it works, and get a stable earned income history. Trust me even if your score is 800 but you don't have much lending history or a steady W2 with low DTI ratio then you won't even qualify for an auto loan much less a mortgage loan. Coming from someone who was is your shoes once and thought the same. I learned that your income, credit history NOT just the score you see on CK but actually length of credit history and DTI plays a big role in your lenders decision in approving you or not. Best of luck.
You’re going to figure it out and make it in life. Most 19 year olds wouldn’t have made it this far. Listen to podcast and read constantly. Learn and keep saving! You’ll make the move when the time is right. If I only had 5k to work with I’d buy and sell smaller things like cars and whatever you can to make a buck. I did that for a while doubling my money every so often then started blowing it out of the water once I got into real estate. Good luck!
@Christopher Raiz Congrats on thinking ahead! BP is an amazing resource for all of us. Know that some of the questions you ask are discussed at length in various BP's forum posts, podcasts and blogs. You can always search this site for terms (ex, REIT or Syndication) and learn more about these investment opps. Best of Luck!
I’m 21 and I was in a similar position I had 15k for my first spot.. I was looking for a single family type home with a basement apartment or something of that type. I ended up finding a three unit and knew I had to have it. I had a great business connection much older than me who ended up going 50% in on the property and as it was my first home we only had to put down 5%. I didn’t use close to 15k for the down payment. Maybe you could find a partner as it might be difficult for you to get a mortgage regardless. If I were you and if you’re a hard worker see if you can pool together maybe 10 pair up with an investor and put everything you have into it. No risk no reward. Some people here might think I’m crazy but realistically you’re 19 what do you have to lose?
Originally posted by @Christopher Raiz :
I’m 19, I have 5k saved, credit built for nearly a year and I’m eager to get into the real estate business but I don’t know where to exactly start. I know people say to just jump in otherwise all the knowledge I’ve learned is useless without action, but the farthest guidance I have is reading books on all the different types of investing into real estate lease options, flipping, the step-by-steps, and the mindset.
I have a couple connections to a few real estate agents that have been successful in their craft (one is the top real estate agent in their company they work for and the others are entrepreneurs) and have yet to discuss with them but I just would like to know if anyone has any helpful advice for someone who has absolutely no experience of being out in the field.
Do I get a mentor? Do I go into it by myself and learn as I go along? Will people actually purchase/rent/lease a property from somebody who is only 19? Or even common misconceptions about real estate? (One extra question, if I invest into a house and it’s not going well and I need to back out of a financing deal I’ve made with the owner of the residence will I be able to easily?)
Thank you for any responses and advice I really appreciate it.
Chris check out the book Set for life by Scott trench, it talks about house hacking which at your age would be a great start.
I would look into HUD homes in your area, there are some good options in aurora. Get a couple roommates, they can pay your mortgage and fix stuff up as you go. YouTube is a great resource for learning how to change faucets, patch wall holes, that can save you some extra money and teach you important skills when you're starting out. I know you said you're not familiar with flipping, but if you can live in terrible conditions for a couple weeks while you make the place habitable you can really build some equity.
My first house was a HUD home bought for 55k, sold it for 87k with only 10k worth of work. That was in Bolingbrook. Good luck.
How long will it take to build and fix your credit when you have student loans? I don't have any capital for investments. I'll be licensed in February but I would like to start investing today. Please give me some information on bad credit and no money! OPM is one way but how do I get to that point?
If you are young, make 2K a month, have $5K AND a good credit, you should start with buying your first property using the best First TIme Homeowner program (with the lowest APR, low down payment), live there a year (may be fix it while you stay there) , then sell it for a profit and repeat until you have enough cash to invest on your own and buy a second, investment property.
The main obstacle you will face right now is the amount of mortgage you can qualify for, which with your income could be around $60,000. As you may soon find out, very few if any traditional mortgage companies will want to lend you so little (they will refer you to your local bank to get personal loan), because they don't make much (and actually can loose money) if they lend you under $100K. Then, even if you secure financing, you will see that it's not very easy to find a RIGHT property within that price range. Meaning, it's very difficult to find a property in such a price range in a good/upcoming location where values are stable or going up. I won't say it's impossible (just because I live on East Coast around DC, where house prices are irrationally over-inflated and where wages of the majority of people are less than one eighth of the median house price, I won't say that the entire US is the same), but you will have to do some leg work to find it, and you would have better chances in one of the more average Citizen oriented parts of the country, such as in Mid-West, than on East/West Coast.
Still, your chances to make things work are a lot higher than mine, a home owner with $170K in available resources (including hard money) for investment property, because: 1. you can take advantage of the First Time Home buyer options , and you can also qualify for 203K loan (FHA), these are great loan programs because you get a conventional 30 year mortgages with low down-payment and low monthly payment, and the worst thing that can happen to you is that you will end up owning your home and building an equity in the long term. Whereas, if I invest $170K and it turns out to be a bad bet or market sinks tomorrow I will loose everything.
I can't advise you much about rentals. I personally stay away from it, even though it's a great way to build a long term wealth and asserts. I would buy and hold as many houses as I could afford to (have enough disposable income to pay off mortgage and taxes on MY OWN), then I would list it for rent. If you get renters - great, someone else will pay your mortgage. If they don't and you have to drag them to court to evict and your property stays vacant half the year, well, you are still going to be OK and even building an equity, as long as you have enough disposable income to pay the mortgage. I personally wouldn't want to get into rental business unless: A) I had enough to pay it off own; B) I had a large portfolio of properties (10 rental units or more), and could afford to sustain certain vacancy rate and deal with some non-paying tenants. As a start-up getting into rental business is a huge risk (in my opinion), and I hear about a lot of people who get distressed and sell their investment property for a lot less than they should because they are too desperate to get rid of it after experiencing a lot of frustration with non-paying tenants.
@Miguel Castillo Sounds great! I'll pm you my # and we can talk schedule something!
@Kevin Evans Thank you for the advice! I'll be sure to listen to the podcast starting from one and take notes! I've been building a plan of action and it's going well! The quarterly thing I still have to implement into the plan it's just a foundation right now but again thank you for your advice! I really appreciate it!
@Calvin Ozanick I'll be sure to get my real estate license ASAP! I've been looking into it and will get it very soon. As for the mentor, would getting a job doing real estate for a company work well and seeing how everything operates and learning from multiple individuals work well? or would getting one mentor for the start that is well known in the industry that has success work better?
@Minh Nguyen Hey thank you for the advice! About the construction what construction type would you recommend I learn?
@Christine Caturano I'll be sure to look deeper into BP and see what I can learn! Thank you for bringing this to my attention! I'm eager to learn and this seems like the best place to start!
@Alex Jamael That sounds great! Should I find an investor or a partnership you think?
@David Perry I've been talking with someone about real estate classes so I can learn more and get my license soon, I plan on taking one as soon as I can thank you for your advice!
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