Preparing for Propert as a teenager?

Question

I’m 15 years old awaiting many job applications (still not one), my parents own about 3 rental properties at the moment and have done quite a few flip and sell kind of deals. Although I have gained some knowledge from renovating and going to auctions with them I really want to know how I can prepare for property purchasing when I turn 18.

Credit score?

Anyone else bought a house young?

Any lessons I need to know?

Thanks a lot.

Credit score?

Anyone else bought a house young?

Any lessons I need to know?

Thanks a lot.

Ben Baye · Answer

@Jordan Lewis I absolutely love seeing young people getting excited about real estate and planning for the future. That motivation is the primary starting point. No one gets anywhere without drive.

As for credit score, the previous comment was great. Make sure to pay it off in full every month like they said. That is key.

I was driven like you at your age. Bought my first property when I was 16, 1/2 acre with an old shop on it on a dead end road. Ended up building my own house there when I was 20. Built and sold several spec homes and one fix and flip by 20 too. I lived in a small town. Less than 3000 people but was willing to do what most weren’t - hard physical labor but I loved it. I say this because with drive and a willingness to do what others won’t you can accomplish a lot and you don’t need to be in a big city to do it.

I would suggest you try to get a job in the trades. Construction related, this will give you knowledge of buildings from many angles. You don’t have to stay in the trades but being as young as you are 5-10 years will give you a really good foundation for investing. In the trades you will also be building relationships with contractors you can work with down the road. It’s even likely you will get to know agents and lenders as they are integral to construction.

Save money - this was my down fall in my youth. Don’t spend it cause you make really good money. Do a budget and only spend what you’ve allowed yourself to spend on play things!

Buy a fixer upper for your first property, something you can work on after work/school and on weekends that will be low cost. If your parents are willing to co-sign while you’re still at home and have minimal expenses even better. That’s how I got my first parcel. Since they are in that market they should be able to guide you into a good investment.

Really try to grasp the business end from your parents. That’s another thing I didn’t pick up until later. My parents were both self employed and they built a lot of specs. Taught me the trade but they weren’t good with the business end. I feel like I lost years of success because I didn’t understand that side of things. Pick their brain about everything you can think.

Good luck

Heath Ryans · Answer

You should absolutely build your credit history. Not just for real estate but for life.

**the following is not financial advice. Consult a licensed professional**

The moment you turn 18, get your own credit card. Use it and pay it off in full each month. Also, If your parents will agree to it, have them add you as an Authorized User on one of their old credit cards that's in good standing. You don't need to get a copy of the card. But it will transpose their long credit history to your credit profile which will give you a great edge in life starting out.

You can absolutely buy a house young. Keep watching your parents successful actions. Go on a deep dive with them on their numbers, how they analyze, ect. Listen to podcasts. BP is an awesome source of knowledge but don't restrict yourself to just this platform. Read books. Browse Zillow in your free time looking at listings and how different neighborhoods are priced.

When you get your license, drive neighborhoods that you have looked at online. Pay attention to the quality of the area relates to pricing and Days on Market. What areas list high, what areas move inventory quickly, ect.

Get a job working for another investor. Whether that be your parents or someone else.

Go to meetups as soon as possible and being networking. Meet everyone in your area that has involvement in investing.

Start narrowing down what you would like to pursue. Be that flips, single family rentals, multifamily, wholesaling, ect.

That should get you started.