New to Real Estate · Louisville, KY · Member since 2019 · 127 posts · 86 votes
Hey guys! Just thought I would throw this out there and see if anyone has advice for me, I am VERY fascinated by house-hacking, and have been watching / listening / reading everything I can about it for multiple years now (I am only 20, so that is pretty much all of my adult life thus far). However, because I am in school, I obviously don't have enough time to make an income that would even begin to approve me for a loan on a house, especially in the area of my school (Boulder / Denver, CO). But I would rather not spend my time in school just waiting to be out so that I can begin working and start investing in real estate, because all signs seem to tell me that the earlier you can get started, the more it pays off down the line. Does anyone have recommendations on what I can be doing while in school for 2+ more years?
Any advice is appreciated, and obviously I still have a lot to learn before I actually begin investing.
Attorney · Akron, OH · Member since 2016 · 535 posts · 389 votes
6y
Since you're looking at a two-year period that will likely be 'inactive' with respect to real estate, you should discover what kind of investment strategy you're interested in. If you're interested in buying and holding or flipping, perhaps you should jump on a contractor's crew to learn some basic rehab skills. Those skills will be useful in either of those strategies but will also be useful in your personal life.
Beyond that, perhaps you should consider an internship with a real estate agent or property management company. I know on a lot of occasions that property management companies that manage school rentals give out free rent to their employees. That's a pretty good deal because you can minimize your expenses while on limited income while also learning how to manage properties.
In the meantime, you should definitely link up with your local Real Estate Investors Association meetup as well as any BiggerPockets meetup. Networking is something you want to do so you can ease different kinds of burdens down the line. One issue that folks have, for example, is finding a reliable contractor. However, if you're able to network with folks that have been in the business, you'll be able to extend your network to include reliable sources. Good luck with your schooling.
Attorney · New York, NY · Member since 2019 · 72 posts · 27 votes
6y
Definitely read as much as you can, get an internship, and learn from those around you. Since you're so young you'll have some time to make mistakes, but why not figure out how to avoid those mistakes from reputable agents and investors in your area.
Rental Property Investor · Raleigh, NC · Member since 2019 · 20 posts · 5 votes
6y
I was in your exact same position a few years ago. I desperately wanted to invest but just couldn't due to the fact that I was still in school. I had read numerous books, read many forums and articles online, and watched countless videos. Real estate is one of those things you can study for years until you actually pull the trigger and acquire your first property. Your learning doesn't really stick (at least it didn't for me) until you actually do it. Coming from someone who was in your shoes, I know how eager you are to get started, but I recommend waiting it out and starting once you're all done with school. Here are some focus points for you to work on now that will put you in a more favorable position to invest once you graduate.
1. Work on boosting your credit score - Use a site like Kredit Karma or Nerdwallet to see how you can improve your score - A better score will most likely yield a lower interest rate
2. Focus on saving up a nice chunk of change (the expenses tend to add up quicker than expected when buying your first property)
3. As mentioned by other members, hone in on your investing style (Ex: area, price, condition, type)
4. Start building your team. I focused on this while I was in school so once I graduated, I had all the pieces in place and was ready to invest. I had a realtor, mortgage broker, property manager, and general contractor.
5. Focus on improving your weaknesses. You don't know what you don't know until you actually start investing, but there are general topics that you can improve upon. For example, if you don't know much about taxes when it comes to investing, focus your learning there.
6. Find a mentor who is currently investing and help them. I know this is easier said than done, but it's well worth the search. I have a college friend who still has 2 years left in school and wants to begin investing now just like you. He has asked that share my experiences with him as I begin to invest so that he will know what it's like once he begins.
Use this time in school to prep yourself as much as possible before you begin your investing career. I know you're eager to start now but there is much responsibility that comes with buying your first property (ex: time, stress, money). It is better to start earlier, but 2 years won't make a huge difference. And if you're able to buy a property right after graduating, you will be way ahead of the curve.
New to Real Estate · Louisville, KY · Member since 2019 · 127 posts · 86 votes
6y
@Paul Hillyard That is a great way to put it "The more you know, the less you need". I have definitely checked out Grahan Stephan, I will have to look into the others here as well. Thanks!!
New to Real Estate · Louisville, KY · Member since 2019 · 127 posts · 86 votes
6y
@David Dachtera That's a very valid point. I love the way you put that "Lack of education costs". And you are right, I would be willing to bet a majority of the RE podcasts I have heard talk about mistakes they have made, and how they would have done it differently had they known what they were doing. The only thought running through my head now is that I am already paying thousands for college education, it is hard to justify paying more money for RE education when it is so easy to post on a forum like this and get connected with so many knowledgeable people. But point taken, I will reconsider my options. Thanks for the post!
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
6y
@Isaac Pyle I meant 203K FHA Loan. My bad that was a typo. If you dive into that type of loan you may find the draws backs significant. Not trying to scare you away from it just letting you know.