14 year old interested in real estate.

12 Replies

Right now I am currently 14 years old and I have been reading The Ultimates Beginners Guide to Investing in Real Estate by Brandon Turner. I have also listen to about 15 BiggerPockets podcasts about house hacking and investing in multi-family properties. I have a few questions about multi family investing. I know I am very young to be interested in investing in real estate and planning out my life this early but I am very intrigued about real estate. Should my first investment use the BRRRR strategy when I have no experience on anything? What are some states that have cheaper fixer-uppers (I currently live in Minnesota)? What books do you recommend for learning more about the Real Estate aspects of House hacking and the BRRRR strategy. If you could, can you please answer my questions. Thank you for your time.

@Austin Jacobus It’s too early to decide what your first investment should be right now or you just want to continue to learn and try to get some hands on experience. By the time you were ready to execute on your first deal you might have a better option than you have now so don’t make long-term plans yet instead try to find an investor that you can add value to work on projects to gain experience. it’s too early to decide what your first investment should be right now or you just want to continue to learn and try to get some hands on experience. By the time you were ready to execute on your first deal you might have a better option than you have now so don’t make long-term plans yet instead try to find an investor that you can add value to work on projects to gain experience

I was interested in rentals at that age too! BRRR sounds sexy but is really hard to make work in MSP area. I'd focus on getting all the knowledge you can find and get skills needed to make a decent income. I was the same way as you man, it just takes time and effort.

I congratulate you on your ambition - that’s really beautiful! You have what it takes to be very successful. 
At  this time in your life it’d be best to become as knowledgeable and informed as possible - by reading , listening , and asking as many questions as you want here on BP , just like you’ve done now. 

I would defiantly recommend reading as much as you can, in order to absorb as much information as possible. Its good to be interested in real estate at a young age. Personally I wish that I had been interested when I was younger. You are never to young to start good habits, and be thinking about your future. As far as actually investing, there really isn't any way for you to start at this age unless you have a lot of money, but do as much research as you can so you can understand how to find a good deal, and even practice evaluating deals. I would also agree with @Tim Swierczek that finding an investor that can help you learn the basics, and can mentor you when you are ready to start investing is a great idea. 

Some good books to start with are: 

Rich Dad Poor Dad by Robert Kiyosaki 

The House Hacking Strategy by Craig Curelop

The Book On Rental Property Investing by Brandon Turner

The Bigger Pockets Channel on Youtube is also a great place to learn about investing.

Start saving! Depending on your state laws, you're old enough to get a job. When I was 14, I had a paper route and a part-time job at the local DQ. By the time you're 18, you can have enough saved up for a down payment with an FHA/203K loan. You can put 3.5% down, you'll be given the funds to rehab the property, you can live for free, and you'll have some equity to do more deals when you're done with the rehab.

Hi @Austin Jacobus , getting good at anything in life requires deliberate practice and repetition so congratulations on planning to get started investing at such an early age, you won’t regret it. You are doing exactly the right thing to focus on education as a first step. I see a couple of elements that might be in your favor right now:

1) Time - you potentially have more time available to dedicate to real estate investing than some other investors. This has real value because there are ways that you could monetize this e.g. by searching for deals that others ultimately buy or by writing content

2) Alignment with education - if you practice underwriting deals for example you will be employing math, analytic skills, use of Microsoft excel etc. If you start out by writing content you will be developing your written language skills, by researching markets you will be developing a better understanding of our country, you engaging on forums you will be developing your engagement and collaboration skills etc.

Think big and don’t let anyone tell you that your age has to be a barrier. Good luck!

@Austin Jacobus Keep on learning! You could spend the next couple years gaining valuable experience in fields in or relating to real estate. When I was 13-16 I worked for a home builder in the summers cleaning out job sites, laying sod, and all sorts of odd jobs that were too small for him to contract out.  To this day that experience continues to add value to how I invest.  So, get these types of jobs and gain the firsthand experience, skills, knowledge, and connections and they could really pay dividends as you get older and can start your own investing.

Also, if you have earned income from a job you can stick it into a Roth IRA and invest in the stock market in a broad, well diversified index fund or ETF. You can always take out the money you put in initially as well as an additional $10,000 of the growth if you're using it for your first home purchase. Best of luck!

@Austin Jacobus Good on you for developing an interest in personal finance and real estate so early. Your biggest gate keepers will be money (like it is for most first-time home buyers) and to a lesser extent your credit score. There are workarounds for the second one but I'd recommend talking with your parents and seeing it they can add you as an authorized user on their credit card account, and also be sure to sign up for a card right once you turn 18. This will help you to start building your credit history.

Aside from that just get a job and save as much as you can without compromising having fun with friends, you're still a kid of course and have sooo much time to make moves in real estate. Aside from that, hands on work helping either at your job or helping your parents with home improvement projects will pay dividends later on. 

At 14 it's probably too early to think about post high-school plans, I mean I didn't really until my junior year but I also didn't know jack about real estate till 4ish months ago and I'm 23. Anyhow, there's a million different paths you can take at this point but I think a fast track would be going to tech/trade school for electrician/HVAC/plumbing, you'll make decent money after a couple years won't have too much loans to pay back if at all and will learn a great trade for future real estate investing. 

Originally posted by @Austin Jacobus :

Right now I am currently 14 years old and I have been reading The Ultimates Beginners Guide to Investing in Real Estate by Brandon Turner. I have also listen to about 15 BiggerPockets podcasts about house hacking and investing in multi-family properties. I have a few questions about multi family investing. I know I am very young to be interested in investing in real estate and planning out my life this early but I am very intrigued about real estate. Should my first investment use the BRRRR strategy when I have no experience on anything? What are some states that have cheaper fixer-uppers (I currently live in Minnesota)? What books do you recommend for learning more about the Real Estate aspects of House hacking and the BRRRR strategy. If you could, can you please answer my questions. Thank you for your time.

Welcome aboard Austin. If I were you I'd start stacking cash now and when you're 18 you can buy yourself a home using an FHA loan and rent out the other rooms or apartments to your buddies. Doing it this way will be way cheaper and smarter than investing out of state. Do it this way and you only need to come up with 3.5% down as opposed to 25% on a non owner occupied property. If you are going to college this will work especially well so long as you buy your home close to campus.

Wow, @Austin Jacobus , you sound like an amazing, unique person. You are already well ahead of people your age, and heck, most people in general! There's some great advice that's already been said. Save your money. Spend it wisely on fun things. When you turn 18, you'll be offered credit cards, but don't fall into debt like many Americans. If you use it, only spend what you have each month so you can pay it off *fully* each month.

With all the savings you'll have, I would recommend your first step in the future to be to purchase your own property and house-hack it. Even though you'll have lots of savings, I would recommend you not put it all into the house. Only put down what is required (which these days is typically 3-5% of the purchse price *plus* 5% of the purchase price in closing costs). With your housemates/renters, you'll likely not need to pay much out of pocket for your mortgage every month, if anything at all. But if you were in a situation where you had no renters, you could still afford the house alone. That is key.

Keep reading books! Listen to podcasts. Follow like-minded YouTube channels. Don't listen to people who will question you or tease you. You are different than most, and that threatens some people. 

@Austin Jacobus

Congratulations on being interested in one of the greatest wealth building tools available vs. being a Fortnite junkie.  J/K, it's fine to be both!

Step 1 is to invest in yourself.  Make sure you're getting your education 100% squared away.  I would focus on practical accounting and business math (know how to budget, run a Profit and Loss statement, etc), English and reading (so you can decipher contracts and laws), and public speaking so you can communicate your ideas clearly and concisely.

Step 2 is position yourself for future opportunity by getting to know people in the business.  Start visiting with people who own rental properties.  Find happy people, not the Debbie downers who hate life and complain about their tenants constantly.  Ask if you can "tag along" as they evaluate potential purchases, write up work orders, talk to the city, and go to closings.  Most folks who are successful, happy investors would be delighted to give a young person a leg up, and maybe some day they will sell you some properties as they prepare to retire or want to sell a few to invest in something else.

Step 3 is learn all you can about financing.  Real estate's life and blood is getting the funds needed positioned and ready for when a good opportunity comes along.  I'm not necessarily talking about debt either.  I think going into a pile of debt can be a disaster the first time out, especially if you don't know what you're doing.  What I'd like to see you do is talk to people who have money to invest and see about putting your own savings from jobs in with their money to purchase something.  Let their wisdom help guild you as you make decisions together with your (and their) hard earned savings.

Finally, the overall theme of these steps is become a "people person" if you aren't already. Real estate is a people business, and your ability to relate well with others will drive your success more than anything else that you do. Spreadsheets are fine and useful, but all the spreadsheets in the world don't bring you deals or tenants. You need to be able to talk with contractors, bankers, investors, city inspectors, lawyers, accountants, tenants, title agents, real estate agents, etc. It will be a diverse group of people who each play a role in the overall process. If you are shy, there are online courses on YouTube about building confidence. But I think the most useful thing is learn to talk to people about things that interest them and/or are mutually beneficial. People warm to others who take an interest in them and help them achieve their goals, so conversation flows naturally.

Best wishes!