Teenagers starting out
Lender · Boca Raton, FL · Member since 2019 · 18 posts · 14 votes
Teenagers starting out
Most Popular Reply
Hi Joe,
Read Rich Dad Poor Dad and Get a Job (When Corona is over) and make as much money as you can as quickly as you can (don't spend ANY of it).
If Olive Garden is still in business after Corona the waiters there seem to make pretty good money.
Read the education links at the top of this site.
Learn from the posts on this site.
Good Luck!
12 Replies
- Rental Property Investor · Victoria TX / Portland, OR · Member since 2019 · 94 posts · 96 votes6y
I am continually impressed to see people so young displaying a passion for real estate. There is so much potential, and wanting to learn what steps to take is a great start.
What I recommend to everyone is to first figure out what it takes to get a loan. Learn the loan process, learn what banks require to approve you for a loan. Usually they desire something along the lines of 2 years of verifiable income. You'll need a down payment. They'll calculate your debt-to-income ratio. A lot of these numbers cause the rates to change drastically, which is why it is so important that you learn about them now that way you can hit the ground running when you get your things going. And while you're working on, say, getting your credit utilization low and making timely payments to jack up that credit score, you can then start studying up on the real estate business. (The whole credit business is a timely endeavor.)
Once you get a grasp on what constitutes a good credit score and you start implementing goals to make that score better, then you should take some time and figure out what it is that you want to do in the real estate world. Do you want to flip? Wholesale? BRRRR? Buy and hold? Do you want to get into commercial real estate? Apartments? Condos? You really want to narrow your focus on one particular arena that way you can spend more time learning the particulars and the nuances so you can achieve a higher level of mastery.
Other than learning what it takes to get the best loan rates and working toward reaching a supreme status there, education is the most important thing. You could also see about reaching out to other investors and offer to do all the leg work on a deal with them. Remember, you want to make them an offer they can't refuse. You want to bring something valuable to the table that will make them see you as an asset rather than dead weight. You can of course augment your chances of success there by exhibiting to them that you are well-read (but not pretentiously so). Last thing a seasoned investor wants to do is to have to spend time explaining what depreciation is.
I'm not a seasoned investor, but I spend an inordinate amount of time listening to seasoned investors talk about why they take on a particular apprentice over another. I hope that I can convey some of that information over to you to enhance your chances of success. If you show that you have a drive for this, if you show that you are knowledgeable, that will attract others toward you. Read, listen, learn, take action and you will succeed.
- Lender · Boca Raton, FL · Member since 2019 · 18 posts · 14 votes6y
Thank you sir I appreciate it. Do u have an opinion on if I should go to college taking into account that i would like to be a real estate investor?
- 6yMindy JensenPro MemberBiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
You need money to buy real estate. At 16, I'm guessing you don't have tons of cash sitting around. Start collecting it, because getting a mortgage is going to be almost impossible at your age. Banks simply won't lend the money to someone under age 18.
You also need knowledge. Read the blog here, especially the Tenant Screening and vetting deals articles. (www.biggerpockets.com/blog)
Sign up for the webinars - they're free and provide a TON of value. (www.biggerpockets.com/webinar)
Hi Joe,
Read Rich Dad Poor Dad and Get a Job (When Corona is over) and make as much money as you can as quickly as you can (don't spend ANY of it).
If Olive Garden is still in business after Corona the waiters there seem to make pretty good money.
Read the education links at the top of this site.
Learn from the posts on this site.
Good Luck!
- Rental Property Investor · Victoria TX / Portland, OR · Member since 2019 · 94 posts · 96 votes6y
There are so many people who are wildly successful in real estate while they work normal jobs. Even in today's world, I would highly recommend that you pursue a college degree, even if you want to pursue real estate full time. Getting a degree not only looks good, but doing the required school work forces your mind to think, it forces it to create and reinforce neural pathways. While you may take a course or two that seem irrelevant, it's still causing your mind to work. When you work your mind (heck, even by doing crossword puzzles), you'll find that you are able to make connections easier. You'll start relating two completely random, seemingly irrelevant bits of knowledge together to come up with a viable response.
And while in college, you could take classes such as accounting or any business related class. Marketing, Accounting, Advertising, Business Basics. Any courses will give you knowledge to build a real estate business. As they reiterate in the BP Podcasts time and again, real estate is a business and the best ( … the only) way to excel is to treat it like a business.
Keep that mind working. Keep those neural pathways firing. You will see how it helps when you face a situation of which you've never encountered.
- Lender · Boca Raton, FL · Member since 2019 · 18 posts · 14 votes6y
Thank you all for your insight. I will take it all into account!
- 6yDan SheeksPro MemberRental Property Investor · Denver, CO · Member since 2016 · 621 posts · 362 votes
Hey @Account Closed
Congrats to you for your ambition! I am willing to help you out with some advice or even chat on the phone if you wish. But I recommend you read this article I wrote for Bigger Pockets titled How to Invest in Real Estate Before Turning 21. Once you've read it, let me know your thoughts and if you have any questions. Best of luck and hope to chat soon!
https://www.biggerpockets.com/... - Lender · Boca Raton, FL · Member since 2019 · 18 posts · 14 votes6y
Thank you Mr. Sheeks i appreciate it.
- Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes6y
Originally posted by @Account Closed:
Hello im a 16 year old that has a dream of creating massive wealth in real estate. Im just wondering if anyone has any suggestions about what i should do, what im capable of doing right now, and how i should spend my time to better myself in the field. Thank you!
I love a fresh "go get 'em" type of post in the morning! And for what it's worth, your ability to post a clear and cohesive message is better than some twice your age around here, LOL.
Good on you for wanting to get started so soon.
If you are thinking about college consider the impact that may have on where you buy your first investment property, as well as on your finances. Most people can't get into real estate without having a full time job that first supplies the funds to be able to afford a house. So you will likely need a career. Try to get into that career as cheap as possible. Think community college, tech schools, apprenticeships, etc. You want to get into the highest paying career (that you enjoy) for as little money as possible. This will give you the ability to get out of the gate (graduation) in the best financial position.In terms of how much money you should save up, if I were you, I would take a look at the local real estate inventory that you are interested in and save a percentage of that. If you are doing a small MFR(1-4 residential units) and want to get in with little money down, a FHA or USDA loan is probably your best option. A good rule of thumb is around 10% of the purchase price. If you go FHA, 3.5% will be a down payment, then the rest can be applied towards closing costs and a reserves / emergency account.
Best of luck! - New to Real Estate · Chicago · Member since 2019 · 11 posts · 4 votes6y
Rich Dad Poor Dad.
Rich Dad Poor Dad.
Rich Dad Poor Dad.
Read the book. Read it twice. It will help build a foundation of knowledge and shape your mindset away from how most live, acquiring liabilities and and never focusing on their assets.
You’ve got the drive; now use the drive to educate yourself. And do NOT make the mistake of spending tens of thousands of dollars on an education unless you know what you’ll be doing afterward and it’s profitability.
I’m excited for you! Lots of good information from these posts. Best of luck.
- Member since 2020 · 10 posts · 4 votes6y
Hello Joe! I am 21 and about to graduate college and I have had a passion for real estate investing since I was a freshman in high school because my dad showed me how amazing it can be to gain financial independence! My brother is a freshman in college and the two of us want to start something that doesn't require as much up front capital and can be a huge learning experience. We were thinking the wholesaling route would be best to start it and then when I graduate I will start doing other investing beginning with house hacking my future house. I had a lot of trouble knowing what to do with the little money I had in high school and college (especially with my student loans) but my biggest piece of advice is just to start by learning and researching and finding mentors so that you can prepare a plan the second you're ready to take action! There are of course ways to start investing in real estate with little money or leveraging debt but knowledge is also power and will save you time and money learning from what mistakes other people have already made. But don't be scared to take action as well! Feel free to reach out if you would like to keep talking.
- Member since 2019 · 62 posts · 23 votes6y
Your young, do you ever plan on DIY / repairs / fixing things in your homes you buy in the future? If so do some construction as a side hustle. learn all there is on investing while you save up money. invest in your future like a IRA. Figure out what type of investment you want to buy. Live below your means. you will get there if you save well and just learn all there is about real estate.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.