Is 1500 enough to start in real estate?

New to Real Estate · Greensboro, NC · Member since 2020 · 14 posts · 30 votes

Hello everyone. I am 20 years old and am trying to start investing and learning about it now. I graduate from college next year and would like to live below my means and invest. I have 1500 saved up and don’t know what to do with it.

Any suggestions?

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Jonathan GreeneBusiness Member

Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes

A lot of people will tell you to go for it, jump in, take that step, but it's not realistic. If you have $1,500 saved and that is all of your savings you can not invest in anything with that, nor would it be worth it. I mean technically you can, but why? What is the rush and what are the risks? Say you buy a no-money down house to house hack and the furnace breaks. How are you paying for that? All real estate investing requires reserves to account for things that come up. 5-10k minimum for any property up front or when something happens, you can't fix it and then the problems get worse. Partnering with that little money won't bring you back enough income or experience to make it worth it. Just learn. Go to local REI events, listen to the BP podcasts with guests between 18-25 years old and see what their journey was. But $1,500 should just be the beginning of a bigger savings plan, by living below your means as you said, so you have more if something goes wrong.

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Bill Goodland
Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
6y
@Travis Cannon if $1500 is all you have I would recommend listening to some Gary V. You can probably get a lot better returns with that little of funds by buying and flipping things on Craigslist and Facebook marketplace whether it be appliances, sneakers or cars. Way easier to double your money that way with some hustle than make $1500 go very far in RE. Once you have 10-20k saved up then I would get into a househack depending on your market and never stop learning
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Bill Goodland
Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
6y
@Travis Cannon my other recommendation is while BP is great and offers amazing value on their books, if all you have to invest is $1500 and you’re spending $80 on books before you’ve listened to every free podcast or webinar you have, then you need to re-evaluate your spending habits. It’s way easier to cut expenses when starting out than it is to get spectacular returns
2 Reply
Bill Goodland
Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
6y
@Scott Trench also @Travis Cannon if there’s any book you should be buying to read, it’s this guys Set For Life
1 Reply
Travis Cannon
OP
New to Real Estate · Greensboro, NC · Member since 2020 · 14 posts · 30 votes
6y
@Bill Goodland Thank you for your feedback! I need to pick back up with the buying and selling!
0 Reply
Michael H.
Rental Property Investor · Worcester, MA · Member since 2014 · 47 posts · 41 votes
6y
@Travis Cannon around here you'll spend half that on the inspection. If you want to make real estate your career I'd use that money to get your license and start your agent business
1 Reply
Frank Wong
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
6y
Probably not in investing but if you want to get into real estate and make it a career. Take the $1,500 and get your real estate license and become an agent. Only thing I know you can take $1,500 and 100x it in a year or two. That 100x will require you to work, sell homes, work weekends, drive around town =).
1 Reply
Kelsey Folger
Rental Property Investor · MI · Member since 2018 · 51 posts · 64 votes
6y
@Travis I would save money and start to learn about one aspect of real estate maybe with a summer job. Accounting, rehabbing, painting, property management, mortgage office, real estate assistant etc.
Start to learn while people pay you, and save that money as best you can for a down payment and emergency fund.
0 Reply
Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
6y
Originally posted by @Travis Cannon:
@Scott Mac thank you! I’m actually almost done with Rich dad Poor dad. Any other book suggestions? I bought $80 worth off of BP.

Hi Travis,
Decide more specifically what you want to do (when you're finished with the $80 you've just spent).
You will be a able o make a more educated decision at that point.
Then you can drill down more precisely with that question. Such as what are good books on flipping, or house hacking, or etc...
A Journey of 1000 miles begins with the first step. Step one--read through what you have already and master it.
Good Luck!
1 Reply
Breelon Bryant
Rental Property Investor · Jackson, MS · Member since 2020 · 156 posts · 41 votes
6y
@Travis Cannon the answer really is "it depends". If you are military, you can qualify for a VA loan with $0 down and house hack if you find the good deal.
You can wholesale with no money or credit
You can use a FHA loan and buy a property with 3.5% down ($40,000) house but i wouldnt recommend this route with only $1500.
Also you could partner with someone who has money and you can split the equity.
All in all, the answer is yes but its which route you decide to take
2 Reply
Caleb Taylor
Contractor · Birmingham, AL · Member since 2018 · 1 post · 1 vote
6y
@Travis Cannon Keep learning and saving! You don't want to blow your money on something unless you know it will be an asset and will meet your goal.
1 Reply
Chris London
Property Manager · Raleigh/Durham NC · Member since 2015 · 210 posts · 293 votes
6y
@Travis Cannon Greensboro NC is an excellent area for investing so you've already got that part figured out. With UNCG and Guilford Cty publics schools as well as the hospital, Volvo trucks, Winston Salem, High Point, and the world-class furniture stores in your area as primary sources of industry there is no shortage of a strong economy, affordable housing, and a high rental rates compared to piti payments.
Since your on a site like BP at 20 years old have you thought about going into Real Estate (or some aspect of it) after college to hone your skills and learn to find deals quickly? Best of luck to you.
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Alex Bock
Investor · Davenport, IA · Member since 2016 · 121 posts · 45 votes
6y
You've gotten some good advice here, but I'll add my 2 cents as well. To the folks saying you should wait and save up, I couldn't disagree more. Some people have the mindset that you're about to take on debt. If you haven't already, learn the difference between an asset and a liability. Real estate, when done right, is an asset (It makes you money). Therefore, it's a good way to spend $1500. I still float above poverty (Not too proud to admit it) but own 3 rentals and 8 units. I did my first deal with $2000 down with a local private lender that specializes in lease options. I was 23 at the time and had been wholesaling for about 2 years. Buy it at the right price and you'll be golden. If you aren't comfortable with putting numbers together, offer to work for an investor that you can reciprocate value for. I always follow the 70% rule (Even better yet, 65% rule). Good luck, I'm rooting for you!
3 Reply
James WilcoxBusiness Member
Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 603 votes
6y
@Travis Cannon as so many others have said, you are well on your way. You definitely have enough to technically get started in some fashion in real estate. However, to be more conservative, I would have more in the bank before making the first purchase of an investment property. You will need some in reserves to conquer the storms of landlord life. Starting with a frugal lifestyle, continuing to expand your knowledge and network, and planning out your goals are all still steps in REI. Do not undersell these items.

Good luck with all your future REI ventures and don't hesitate to reach out to myself or others on BP for advice.
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Arsenio Braza
Member since 2019 · 22 posts · 20 votes
6y
@Travis Cannon
You are into the right direction, but 1500 honestly is a very difficult sum to start on real estate, save more and while doing that read books and attend group meetings that will enhance your insight into real estate investment, I am a landlord for 15 yrs.
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Tabby Gawalis
Rental Property Investor · Melbourne, FL · Member since 2019 · 11 posts · 4 votes
6y
@Travis Cannon
As someone recently in your shoes... take the time in college to learn and go to meetups. I graduated last May, got a job in my related major, and today I got prequalified to buy my first househack! I’ll be finding a property that is a slight live in renovation with roommates who are comfortable with that. Just gotta get the ball rolling. Wholesaling will jumpstart the down payment on your first househack or rental so really pursue that!
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Benedict Jimenez
Orange, CA · Member since 2020 · 6 posts · 2 votes
6y
@Travis Cannon
I'm assuming you are graduating with an Associates. That is a great start at just finding a job that will pay you above your market's average minimum for someone with no experience in whatever you venture into. Some places that require a BA might even hire you just because you have completed some type of further education. Right now just keep learning EVERYTHING. Save cash and constantly think about how you can increase your income to save even more for investments. I know Capital One offers a savings account that offers I think 5-7% interest. There are stipulations with that, but it's a way to get you making a little money on your money while you save and study. I strongly advise to focus on the major 3 things about REI as you keep learning and growing... How to find deals. How to analyze deals. How to finance deals. There is a TON of in between, but as long as you keep those things at the forefront, you're on the right track. Also, if you get really good at those three things, you can offer your skills to a local investor and maybe he/she would consider becoming your mentor or at least let you help them as they help you learn the game. Some investors even have positions within their network that need that type of work being done passively for them as to increase their portfolio. As far as $1500 goes... just save it or invest in yourself. REIA's usually have some type of monthly/annual cost, at least in my market they do, and they are about as much as you have on hand. At least in my market...
Other than all that, you're young and on the right track just by being on here. Think BIG man. And to quote the most loved and hated man in the REI world, "Be great, because nothing else pays!"
1 Reply
Federico Gutierrez
Realtor · Cleveland, OH · Member since 2015 · 2k+ posts · 857 votes
6y
Nope. $1500 to buy a property not gonna you closing costs covered. For advertising maybe.
0 Reply
Steven Lowe
Real Estate Agent · Scottsdale, AZ · Member since 2019 · 448 posts · 320 votes
6y
Originally posted by @Travis Cannon:
Hello everyone. I am 20 years old and am trying to start investing and learning about it now. I graduate from college next year and would like to live below my means and invest. I have 1500 saved up and don’t know what to do with it.
Any suggestions?

Keep saving.

0 Reply
Ryan Jenkins
Rental Property Investor · Kansas City, MO · Member since 2019 · 44 posts · 17 votes
6y
@Travis Cannon Johnathan Greene really hit the nail on the head with his advice. The only thing I would add to it is to look into wholesaling to build up your savings.
0 Reply
Rachel H.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
6y
@Travis Cannon It depends on what you want to do. If buying and holding, probably not because you need holding and fix-up costs. Though, if you plan to find deals for other investors by bird dogging or wholesaling it's a start for your marketing costs. Best of luck!
0 Reply
Stone Saathoff
Investor · San Antonio, TX · Member since 2019 · 576 posts · 307 votes
6y
I would definitely recommend saving up more than that to get started. You are very limited with these low or zero money down options.
0 Reply
Jose Sandoval
Greensboro, NC · Member since 2019 · 11 posts · 2 votes
6y
@Travis Cannon great start! I was in your shoes once and it is doable to start with $1,500. Try house hacking, that is the best way to start. The current market in GSO is a little saturated but deals can be found.
If you are ever looking for someone to partner with, hit me up.
1 Reply
Ralph Lauren
Member since 2020 · 24 posts · 4 votes
6y
@Travis Cannon from someone just getting into the business myself with absolutely no experience, I would consider putting that 1500 into a REIT and let it mature while you learn more about the business
0 Reply
Nathan Faucett
Rental Property Investor · Greensboro, NC · Member since 2019 · 99 posts · 63 votes
6y
@Travis Cannon
Hey Travis - I’m not going to offer any advice that is better than Scott Trench’s or anybody else’s, but I would like to congratulate on starting to think about this when you are 20 years old with few commitments.
You have a ton of flexibility in your life right now, which is amazing! You can use your time and resources to do whatever you can to further yourself in a journey to financial freedom.
Also - I live in Greensboro! Would love to connect with you.
Best of luck
Nathan
1 Reply
Rosa Aponte
Real Estate Broker · Fayetteville, NC · Member since 2020 · 11 posts · 3 votes
6y
@Jonathan Greene
You can always get a home warranty you cover the house for 1 year. That’s a option if something breaks down.
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