I'm 18 and moving into the La Crosse area for college soon. I have little to no capital and credit. I am required to live on campus for my first two years at school. I would like to start making money in real estate as soon as possible. It seems like my best option is to try and wholesale but I was wondering if there was another method that I should try instead.
This is a perfect opportunity for you to become a college landlord! If I was you, I would go make some friends, figure out which of those friends have rich parents. Convince your friends, their parents, and your parents buy a house your junior year. Become the property manager, and start collecting rent from your friends.
Now that is just the water downed, generalized version of doing that. If I was you I would look deeply into any strategy you’re thinking of using before you make a move.
Nathan, welcome to BP and congratulations on trying to get your start in real estate investing. Are you going to Viterbo or UW-L?
Wholesaling can be a great business. However, wholesaling can be quite challenging with little capital. Do you have a wholesaling strategy picked? Direct mail can get pricey on a large scale.
How hard is it to get out of the requirement to live on-campus? House hacking may be more accessible. Lending requirements have loosened considerably - maybe not quite to the point where you can get a mortgage without a job, but maybe not far from that. I can connect you with a lender if you like (send me a PM). Wisconsin has some great owner-occupied loans (you can get a WHEDA loan for 0% down in some cases). A lender should be able to tell you exactly what you will need in order to qualify for a loan in a year or two.
Alternatively, you could work with another investor in town. If you bring value, you could carve yourself out some equity in some investment properties. I've seen some creative uses of seller financing that facilitate purchases with no bank lending and relatively small down payments.
Thank you guys! @Adam Hoffer I'm going to viterbo and they will make me pay to live on campus for my first two years so I could try to house hack but I would have this large expense to pay off and I would probably end up negative. I have a couple of thousand dollars saved to help with getting started and I will also try to pick up a part-time job. For wholesaling, I would probably start off going door to door until I can get a deal to go through then invest that money into something more pricey like direct mail marketing.
@Nathan Atkinson Welcome to BiggerPockets! If you are truly ready to start your career in real estate, get ready to dig in and start doing some research. There are many ways to approach real estate and it is true that wholesaling is probably the best place to start from. Utilize all the resources you have available to you to learn more about RE. Buy books, go through forums here on BP, listen in on podcasts, attend your local REIA meetings etc. However, finding a balance is important because you should not let this project hinder your education and maybe your life in the long-run. Keep learning and try to save up until you are confident enough to pursue a deal.
@Nathan Atkinson consider getting your Real Estate License, and sell while in school, focus on investment property, and investors, you can make nice commission, run lots of numbers, meet key contacts, and watch what other investors do on their dime, see what works and what doesnt, and you can do it part time any time. Pre License is like 32 hours and a test, pretty easy. I am a Wholesaling Hater, I find it to be Shady, even if done legally it is very easy to inadvertently break the law in wholesaling, BUT as an agent if you do decide to wholesale, you can offer an additional option to sellers, Listing! there are plenty of times what you can offer as a wholesaler will not meet the sellers needs, but if it was listed on the open market, you could find a buyer that will meet their needs, and still earn a commission vs walk away from the deal. Also consider, the market is saturated with WHolesalers today, its a really hard road, Legitimizing as an agent can set you apart, and you can learn from real Pro's in Real Estate.