Almost graduated MBA student looking to get started

19 Replies

Hi everyone,

I’ve always had an interest in real estate and I’m almost out into the real world. I’m about to be 24 and will be finishing my master’s degree in Business Admin. this spring. Thankfully I’ll be graduating without any real student loan debt but I’ve worked mostly unpaid internships so I don’t have a real sizable amount of cash to begin investing.

Ideally I’d love to start small and continually reinvest my profits real until it is sustainable enough that I can make it my full-time career, hopefully cultivating it to something substantial.

I am posting to try and get some suggestions or connections from people that were in my shoes to try and put together a plan to carry out this goal of mine.

Looking forward to this journey!

Hayden

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I would also set a written savings goal for yourself and start evaluating properties right away so that you are familiar with the math and the market when you are ready to buy.  Also depending on the price point you are looking at it may make sense to get your RE license.

@Hayden Modaff Welcome to BP. I’m also an MBA, but you’re probably better off taking advice from others on here, unless you want to follow my 1 property every 3 years plan.

@Aaron K. That's great advice Aaron, thanks! I'm currently devouring some books and podcasts on REI in order to familiarize myself with the business a little more. The savings plan is a great suggestion.

@Hayden Modaff The plan wasn’t to go that slow, but that’s how life has worked out. I’m actually trying to speed up that process currently. The 3 rental properties that I have now have equity. I’m selling one (a single family home) and hopefully purchasing a 4-unit property.

It has worked out for me, but if I had to do it all over again I would be far more aggressive. I wish that I purchased a 4-plex when I was 25 and lived in one unit. I had that opportunity, but I was too afraid so instead I bought a condo. It would be 3 more years before I actually had a rental property.

Congratulations on your degree first of all.  I'm semi-local (other side of the state), so we can make a connection sometime if you want. 

  • I would recommend house-hacking to get started. 
  • Keep your expenses low so you can save. 
    • If you keep your expenses low, your rental income can replace your salary faster.  It will also help you save, so you can come up with the down payment for a purchase, or fund renovations.  You can partner for some of the funding as well.  However, it's good to have as much cash on hand as you can. 
  • Keep your credit debt low, and work on establishing credit, so you can get the best rates on bank loans when the time comes.  

Congrats on obtaining (or almost obtaining) your MBA! I also recently completed my MBA in Finance a couple of months ago. I'm 23 and have been working full time in the financial world for the last 3 years. The biggest advice I can give is to secure a full-time job and save, build a habit of tracking your expenses and keep them low, build your credit (most useful if you will use a lender in the future), keep reading and learning about real estate investing, analyze deals (we're MBA's, we love analyzing!), connect with other investors, create a plan for yourself and stick to it. I am currently looking for my first investment property and am loving the hunt and grind on finding the right deal. Best of luck to you! Although I'm located in NJ, I am always willing to help out or give my thoughts and opinions on investing in general (real estate, stocks, etc.)

Congrats! Check out house hacking. Buy a 2-4 unit in area you want to live. You will need 3.5-5% down. Almost all my clients add a closing cost credit so seller pays your close costs. Overall it's not too much capital and most lenders allow gift funds. 

I am not in your market but feel free to PM if questions in general on how it works. I closed 10 million of these last year it's my niche across the lake in Chicago. Your market is much cheaper then mine which gives you an advantage. If you can afford a 4 unit go that route they tend to cash flow the best. 

@Hayden Modaff if you want the fast track I’d start meeting with any deep pocketed friends you have now and tell them about your plans in real estate. You can only get so far using your own cash and can get there lots quicker using someone else’s!

@Hayden Modaff congrats on your MBA! If your long term goal is to go full time in real estate then my suggestion is make that your career right now. It will be tempting to pursue a career based on your MBA. Ideally you can marry the two but take it from someone who graduated several years ago, you will likely follow the job that will pay you the most and that job right out of the gate won’t be in real estate. The sooner you can become a real estate professional the sooner you can build your network and surround yourself with the people who will help you build your career.

Since you said you are immersing yourself in books and podcast I highly recommend two books. Cash flow quadrant by Robert Kiyosaki and The Millionaire Fastlane by M.J. DeMarco. Here’s the abbreviated cliff’s notes version, create a business and be an investor. These two books will open up your eyes to making lots of money which equates to financial freedom.

Best of luck to you Hayden!

@Henry Lazerow I’ll look into house hacking for sure, the concept of it caught my eye a little while back. Thank you for reaching out, if that’s the route I head I’m sure I’ll bounce some questions off you if they arise!

@Brent Crosby I’ve reached out to a few college buddies about it already and have started connecting with local professionals in this area of expertise on LinkedIn, that definitely a route I’ll consider if I find a great deal here soon.