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.
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.
Rental Property Investor · Cleveland, OH · Member since 2019 · 150 posts · 47 votes
7y
@Deonte Ademiluyi Might be able to use the $1000 for a down payment with the assistant program like FHA loan . FHA loan you just need a 3.5% down payment of the purchase price of the property your trying to get & Ofcourse extra money for the closing cost .
So I'm 20 with 1000$ 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.
How long did it take to get $1000 and how hard was it? Is it repeatable?
Real Estate Broker · Austin, TX · Member since 2019 · 32 posts · 18 votes
7y
@Deonte Ademiluyi Spend the $1000 on education, training, practicing and testing your your real estate salesperson license. Find a broker in town who does multifamily. Then spend a month trying to find offmarket multifamily properties and get one under contract for a 8-10 cap. Then flip the contract to an investor. Multifamily is unbelievably packed with buyers. You’ll find one easy.
Rental Property Investor · Columbus, OH · Member since 2018 · 97 posts · 66 votes
7y
@Deonte Ademiluyi
Put that money into yourself. Go to a seminar, meet with local investors in your area, get involved in real estate events, buy a couple real estate books and courses. I spent over $1000 the other day on new vinyl flooring for a 3 bedroom house, and that was EXTREMELY cheap. Your 20 years old (btw I'm only 21) and you definitely have plenty of time. I suggest waiting until you have about $5k stored away and go guy yourself a house with an FHA loan. You could possibly get a cheap house for 3.5% down in a c- class neighborhood that needs a little work, live in their for a year while fixing it up. After the year is up (FHA loans require you to live in property for one year minimum) you could rent it out, refinance out of the FHA loan, and do it again with another house.
That's how I got started when I was 19. But you NEED to learn ALOT about how real estate, property management, and rentals work, especially screening tenants, because starting out your not going to have any money in reserves to fall back on if something goes wrong. Play it smart, take your time, and be patient. Like I said, you have PLENTY of time, so dont get discouraged.
Rental Property Investor · Shakopee, MN · Member since 2015 · 985 posts · 374 votes
7y
Put that 1000 dollars in savings. If you have the ability to work 2 jobs and put more money into savings I say go for it. It might take you a few years to get enough for a down payment, but I believe you can totally do it. I worked 2 full time jobs in my early 20s. It wasn't easy, but I did it to keep up with the house I wanted and eventually bought. Almost any house you buy will need some money put into it.
FHA @ 3.5% will get you in the door somewhere once you have more in savings. You could always househack once you get your property to keep costs down. Many people have started this way.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
7y
@Deonte Ademiluyi Definitely look at your finances first. See where you are spending and figure out if you can cut back in areas. From there, you'll have to see if you have enough money to invest. If not, you may need to build up capital before you start buying and holding. Make a plan on what you intend to do and how you intend to do it before investing in anything. Best of luck!
Realtor · Detroit, MI · Member since 2018 · 387 posts · 129 votes
7y
@Deonte Ademiluyi. . You might need to expand your search. Here in Detroit You can get started with $1000. There are lots of houses here for $1000. They will need (lots ) of work and time. MLS, Auction, Off Market. Good Luck.
Realtor · San Fernando Valley Ventura County Santa Clarita Valley VA, CA · Member since 2019 · 13 posts · 5 votes
7y
@Deonte Ademiluyi, so Deonte, I saw your post and read a lot of feed back like, “You’re not an investor” because you haven’t invested. Or a post minimizing what you have saved, by saying that your money won’t even cover the cost of purchasing property. A lot of your reply’s have truth to it, but no one has congratulated you for taking the step of wanting to invest. You are 20 years old, and if I had that mindset when I was you age ( I’m in my mid 40’s) I would be well off by now. I purchased my first home at 40, after years of renting and saving and am now looking on purchasing a second home and renting my current one. You should keep saving aggressively since you are young. Do not get tempted to spend your money on a car. Set goals for yourself and try and save $5,000 within a year. Also, I do a lot of researching and learning in the BiggerPockets YouTube channel. They have a lot of great ideas, but you have to be disciplined and committed. Keep up the excellent work. I am proud of you you n man. Do not loose track of your vision. I saw a video on YouTube “How to Stop Living Paycheck to Paychck in Four Steps” by Brandon Turner. Start there. Again, I am proud of you son.