First Time Investor with 1000$ Where and how do I start?

Aubrey, TX · Member since 2019 · 9 posts · 6 votes

So I'm 20 with 1000$ saved and I don't want to go to school because I know that I want to start investing. I'm looking through google trying to find a good duplex but honestly, I don't know what I'm looking for and what to do.

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Jonathan Lyford

Member since 2019 · 56 posts · 53 votes

I think that becoming an investor is something that you transition to over time, but you need to first have a steady income so you have some money to invest in the first place. If you don't want to go to school, fine, but you need a some sort of skills and a job that you can make money at. Then, once you have some money saved you can start using that money to invest and create passive income. It just takes some time but you'll get there.

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Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
6y
Well Your not an investor . You need something to invest and 1000 won’t cover the closing even in a no money down scenario
14 Reply
Charles Carillo
Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
6y
@Deonte Ademiluyi
$1,000 is not enough to purchase a property. That will not even cover the closing costs. I would recommend getting involved in your local real estate meetups and networking. Maybe start wholesaling properties to start building some investment funds.
8 Reply
Deonte Ademiluyi
OP
Aubrey, TX · Member since 2019 · 9 posts · 6 votes
6y
@Dennis M. well your right im not yet. So what would in your opinion be the best starting point?
1 Reply
Deonte Ademiluyi
OP
Aubrey, TX · Member since 2019 · 9 posts · 6 votes
6y
@Charles Carillo Thank you for the advice.
1 Reply
Jonathan Lyford
Member since 2019 · 56 posts · 53 votes
6y
I think that becoming an investor is something that you transition to over time, but you need to first have a steady income so you have some money to invest in the first place. If you don't want to go to school, fine, but you need a some sort of skills and a job that you can make money at. Then, once you have some money saved you can start using that money to invest and create passive income. It just takes some time but you'll get there.
21 Reply
Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
6y
@Deonte Ademiluyi if you have a job and have consistent income that qualifies for a loan you can probably find a down payment assistance program in your area. I helped 2 buyers get into duplexes for under $1000 this summer. Look up down payment assistance in your area and find a lender that specializes in it. Househack and put in some hard work. You’re going to have to make sacrifices, live uncomfortably for a bit. I lived in a 2 bedroom unit with a roommate. Rented the other unit and Airbnb’d the porch.
[email protected]512-888-9122
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18 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
6y
You don't have to go to school, but you will need a job that allows you to save money and earn enough income to qualify for loans. Most people don't get started in their early 20s for that exact reason. It is great that you know what you want to do as it will give you the motivation to save for your first property.
3 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
6y
Originally posted by @Deonte Ademiluyi:
@Dennis M. well your right im not yet. So what would in your opinion be the best starting point?

For starters Add 9,000 to it
then read and listen to gain knowledge

3 Reply
Marc Winter
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
6y
"Empty the coins in your purse into your mind; Your mind will fill your purse with coins". (Unknown)
In other words, spend some of that $1k on education and/or re licensing course. Learn, inspect properties. Find a deal and you won't need to worry about how much cash you have (or don't have) because the DEAL will bring the $$$.
11 Reply
Account Closed
Rental Property Investor · Mankato, MN · Member since 2018 · 14 posts · 26 votes
6y
@Deonte Ademiluyi #1 don’t let anyone tell you you can’t do it! It sounds like you have the mindset to be an investor now you have to be creative.
Idea:
Find people who really need out of their home (a mobile home that is pd off might be a great place to start) find one that doesn’t need much work besides elbow grease and paint, offer them possibly a couple more thousand than they want but say only for Seller Financing at 0% interest (look up Chris McClatchy for this strategy). Get tenants in there that can pay you $600-800 and then you make payments to the seller of $300-500 and keep the difference. There is a little more to it but hopefully you get the jist.
14 Reply
Deonte Ademiluyi
OP
Aubrey, TX · Member since 2019 · 9 posts · 6 votes
6y
@Rachael Wick Thank you Rachael i will look into him and i get the jist of it.
0 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
6y
I'd take $500 of that and spend it on education. Buy some books, join some RE groups, and find a network of like minded investors. The more you learn the more deals will cross your path. I'd play it safe and house hack while working a full time job (doing it myself).
4 Reply
Frank Wong
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
6y
Take the $1,000 and learn a high-value skill which you can use in the future to make money. Sales skills or get enrolled in a coding school if that is your thing. It doesn't mean you can't invest it just means you can't invest right now.
The reality is you need money to make money. Sure you can buy a property with no money down you hit the 1% chance of doing it. Cool, you got it. What now? It doesn't change your life. You need a high income earning skills. That's it. Focus on that. 100% of your attention only on that.
12 Reply
Darius Kellar
Real Estate Coach · Member since 2018 · 245 posts · 216 votes
6y
@Deonte Ademiluyi 1,000 is enough for you to become a Detroit Investor. It may even be possible to get started with no money. The conditions of the property that you get is a different conversation. but its a start.
2 Reply
Andrew Flora
Rental Property Investor · North Vernon, IN · Member since 2018 · 136 posts · 192 votes
6y
I would go ahead and start networking with other local investors. Work two jobs until you can save up $10-20k, you should be able to do this in a year or two. Look to buy a good 2-4 unit to house hack with your first investment, you should be able to do this with 5% down. Stay away from all debt unless it is a cash flow positive investment property. No credit card debt, no auto loan, just cash flowing real estate. From there the ball is rolling and you will see momentum with time but it’s a slow start, so be patient.
If you can't wait and be patient then REI probably isn't your best avenue. Put the $1,000 in a low cost vanguard index fund and add $100/week to it and you will have a healthy retirement in your late 60's.
3 Reply
Lennette Lariza
Rental Property Investor · Member since 2019 · 4 posts · 1 vote
6y
@Deonte Ademiluyi Coach Carson has a Podcast with great steps to getting into real estate investing. I believe he also has a YouTube video. You would be in what he class Step 1 - and has many different ways of getting started in the business. Podcast #60 Real Estate Investing- 9 Steps to getting started.
I personally am just getting started. I am listening to Podcasts, reading books and forums and watching videos. Coach Carson has some doable answers for your question.
1 Reply
Patrick Franz
Member since 2019 · 8 posts · 1 vote
6y
@Deonte Ademiluyi invest that in yourself. Classes, training, mentor, books etc...
0 Reply
Noah Mccurley
Belfast, Northern Ireland · Member since 2018 · 128 posts · 56 votes
6y
@Deonte Ademiluyi I would start by learning high value skills and wholesaling too. That it’s provided you have the necessary education. If you don’t feel you know enough read everything that is recommended to you and listen to every bp podcast episode.
0 Reply
Justin Ellis
Property Manager · Scottsdale, AZ · Member since 2015 · 113 posts · 77 votes
6y
@Deonte Ademiluyi
1. Start digesting everything you can on wholesaling, specifically driving for dollars. As many will tell you, this technique isn't really scaleable BUT it can be effective at cracking a few deals to get going ($5k-$10k per deal isn'tout of the question). Don't spend a ton of money on this, audible a few books and dig into groups. Learn the craft and get started!
2. Get a high per hour job so you can make ends meet but have enough free time to focus on the big picture. Someone told me once that Mark Cuban said if he lost it all and had to start over, he would become a bartender. Great pay for the time investment.
3. Play defense! You can make all the money in the world but if you have poor spending habbits you'll just be spinning your wheels. Drive crap cars, wear 2nd hand clothes. Let em laugh at you now, you'll have the last laugh, trust me.
4. Hustle! There's no substitute (unless you have piles of cash). Stick to it, constistant action every day. Don't get impatient and quit, keep going!
5. Keep learning and build quality relationships. You can't do it all alone, don't be stubborn and think you can, that's the slow road.
You're young bro, and seems like you have the right mentality (I truly wish I had your focus at 20)! Stay focused and you could be financially free and able to do WHATEVER YOU WANT by 30!
6 Reply
Danielle Wolter
Rental Property Investor · San Diego, CA · Member since 2019 · 290 posts · 253 votes
6y
@Deonte Ademiluyi Honestly I would keep saving your money. In theory, yes there are ways you could get a house with no money down (not easy with closing costs and such), but what will you do when something goes wrong? What happens when the tenant stops paying rent and it takes 2-3 months to evict? How will you pay for the eviction, the mortgage, rehabbing the place after the tenant destroys it? I mean these things may or may not happen, but you need to be ready for them if they do. I always have a cash reserve to make sure I can cover these things. In the meantime, I would take time to learn as much as you can (there's a wealth of info on here) and make connections with other investors in your area. Figure out ways you can offer something to these investors and learn from them. Identify your goals - what kind of real estate do you want? Why do you want it? Where do you want it? etc. etc.

1 Reply
Brandon C.J. Grimes
Investor · Riverdale, MD · Member since 2019 · 28 posts · 16 votes
6y
@Deonte Ademiluyi all the people saying 1000 ain’t enough you should take a screen shot of. You can do it. The main question is asking “how” to do it. Keep grinding buddy. I’m new too!
7 Reply
Syed H.
Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
6y
Find a skill or go to school so you can make money first. Investors need money. That's literally part of the definition of being an investor.
No money investing does not exist.
0 Reply
Alexis Rodman
Member since 2019 · 1 post · 1 vote
6y
@Deonte Ademiluyi if you are looking to invest in real estate, you probably need to start saving and growing your money in a safe manner. One way you can achieve this is probably through finding a high-yield savings account or a CD. Once you have enough capital, combined with a strong credit score, you could look into going to banks to ask for a loan to pay your down payment along with other ways to finance your mortgage.
In the meantime, you could look into a FinTech company called Beam. They claim to provide interest rates of 4-7% APY. On top of that, they have a referral program that grows your daily interest margins. I'll advice you to do your own due diligence to find a platform or company that best caters to your wants/needs.
Key Takeaways:
1) Invest in yourself and keep improving.
2) Invest your money to make sure your capital grows alongside you :)
1 Reply
Jabari Long
Real Estate Broker · Detroit, MI · Member since 2014 · 384 posts · 149 votes
6y
Start with wholesaling to learn the business, meet more and investors, and to build your capital reserves.
0 Reply
Storm S.
Real Estate Agent · Santa Barbara, CA · Member since 2016 · 518 posts · 283 votes
6y
@Deonte Ademiluyi invest in REIT's
0 Reply

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