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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Marcus Johnson
Investor · Saint Paul, MN · Member since 2015 · 663 posts · 512 votes
6y
@Travis Cannon
You’re broke, save a decent amount of money and then we’ll talk. I’m not gonna give anybody authority that doesn’t have any money or a proven track.
0 Reply
Ryan KellyBusiness Member
Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
6y
@Travis Cannon spend $20 and buy “Set For Life” by @Scott Trench. It will tell you what to do with the money.
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Jr Trotta
Rental Property Investor · New York, NY · Member since 2018 · 74 posts · 18 votes
6y
@Travis Cannon plenty of ways to get started with $1500. First get a mentor and educate yourself! DM me for more information, I can most defiantly help you go in the right direction!
2 Reply
Patrick Houlihan
Rental Property Investor · Member since 2020 · 14 posts · 3 votes
6y
@Travis Cannon
12 rules of life by Jordan Peterson.
0 Reply
Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
6y
Get your license or learn to wholesale. Money does not give you the right to start investing if you are trying to succeed at growing your money. It doesn't really matter if you have too little or a lot. In fact, trying to invest with money being your only resource (lacking experience, knowledge, etc) then you will lose a lot more the more you have. People that have a lot of money should learn to make it in this business with very little. Then when you have a lot, you know exactly what to do with it. If you do that backwards, you will lose it.
1 Reply
Daniel L.
Dallas, TX · Member since 2016 · 37 posts · 10 votes
6y
Hello Travis,
Find a seasoned investor in your area, and offer to "WORK FOR KNOWLEDGE" sooner or later you will learn how to grow your money in no time.It works .
Blessings !
0 Reply
Justin M Henderson
New to Real Estate · Winter Haven, FL · Member since 2018 · 5 posts · 1 vote
6y
@Travis Cannon I just moved to Florida (with no connections or family) to start my RE journey and am currently reading "Flipping Houses" (and "Estimating Rehab Costs") by J. Scott. They are fantastic with actual actionable steps you can take to get to your RE goals. I am learning things that will save me $ in the future for sure. And for a newbie, just learning how to start is the most important to me.

Long term I would suggest "The Richest man in Babylon," How Win Friends and Influence People," "The Art of War," "The 4-Hour Work Week" and almost anything by Napoleon Hill. These are great for mindset changes and strategy.

Beyond that might you might read the "The Art of the Deal." I have not read "Never Split the Difference," but have heard great things. It is by an FBI negotiator.

These have changed my view completely, and it all started with "Rich Dad Poor Dad." I will be rooting for you, sir! I am much at the start of my journey as well. Action is the key, one step at a time.
1 Reply
James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ 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?
The #1 most helpful thing you could do with $1,500 is practice the principles of REI in micro scale; locate a "deal" on an asset, acquire it, grow the equitable value of it, sell it, reap the gains, rinse & repeat.
For example, try out flipping a car, truck, lawn mower.... Yes, I know this is Real Estate Investing site (review my profile). truth is the chance that a "green-horn" will be effective at doing REI from $1,500 is laughable at best, less than 1%. BUT fact is REI is just ASSET Investment, many if not nearly all the principles and fundamentals of REI apply to other assets. I know people who negotiate deals on enclosed trailers, rent them, and profit, same with ice houses, campers etc.
Make it a game, don't leverage the full $ amount, make it something like $500 and the "game" is to do a flip, in 90 days buy to sell, and receive a minimum 20% ROI. You are going to learn soooo much from that experience, and it's far less risk. You will be able to direct apply that education over to real estate some day, and if you keep rolling things up, it could generate the seed $ for doing REI.

1 Reply
Brett Tvenge
Flipper/Rehabber · Phoenix, AZ · Member since 2018 · 269 posts · 152 votes
6y
What are your long term goals? You could use the $1500 to become a realtor and start selling properties. Are you financing your schooling cost? I would take that money and apply it to educating yourself on investing and what your goals are.
0 Reply
Ivan Davila
Member since 2020 · 1 post · 0 votes
6y
@Travis Cannon Guide to Investing, ABCs of Real Estate investing and How to invest in Real Estate are some of my favorite books. I’m sure they’ll answer many questions you have.
Good Luck.
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Jesse Mao
Investor · Katy, TX · Member since 2013 · 47 posts · 33 votes
6y
Hi @Travis Cannon, I think it's possible. Go watch the reality TV show from last year called "Undercover Billionaire". That guy turned $100 into a small business within 90 days. This $100 was all he got besides a phone and a pickup truck. Go watch the show and you would be motivated.
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Travis Cannon
OP
New to Real Estate · Greensboro, NC · Member since 2020 · 14 posts · 30 votes
6y
Originally posted by @Marcus Johnson:
@Travis Cannon
You’re broke, save a decent amount of money and then we’ll talk. I’m not gonna give anybody authority that doesn’t have any money or a proven track.

To be completely honest.. I feel like this was kind of rude. Obviously I am broke. I am a college student trying for a better life with a good head on my shoulders. Stop being negative and look at the positive side. You my friend need to do a self evaluation.
Have a great day!

1 Reply
Jeremiah GoodpasterPro Member
Member since 2020 · 28 posts · 15 votes
6y
@Travis Cannon I look at your question different than some of those who have already posted. You could possibly get a zero down loan but might not be the best option. But you have other options and I think the idea limiting your plan to buying real property with the $1500 is limiting. I think you have many other options I.e. As Brandon Turner puts it be part of the Triangle bring the knowledge and hustle and find someone with the money. So be a bigger pockets pro, research and study the markets your are looking at investing in. Take a CEU course at a community college for home inspection cert that can give you a side hustle and knowledge that could save you money, take a realtor license course(wife just started one online for NC $510 and 6wks, we will cut back on a realtor cost) again knowledge and skill that will aid you in buying and put money in your pocket for that buy. Start wholesaling and networking. Just my .02 from a newbie.
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Sophia Griffies
Real Estate Agent · Raleigh, NC · Member since 2016 · 107 posts · 51 votes
6y
@Travis Cannon Congrats for saving $1500 and educating yourself! You're so far ahead of where I was at your age. There's lots of good advice here. However, I would hold off on taking the realtor course and getting your brokers license until you're actively buying and selling multiple homes. In NC, you're required to take post licensing classes to lose provisional broker status and you also pay MLS fees, realtor association fees, continuing education, license renewal, etc. to be an active broker. It really adds up. Good luck!
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