Hello all. I am completely new to the idea of real estate investing and investing in general. I read the infamous book Rich Dad Poor Dad and ever since, I have had this burning passion for personal finance and setting myself up to become financially independent at a young age. I just turned 20 years old a few weeks ago and I am still attending college. However, I have recently been browsing YouTube and have found multiple channels that discuss investing and specifically real estate investing. After watching numerous videos, I have been wanting to educate myself on real estate so I have been told to check out the BiggerPockets website, along with the podcasts, so here I am.
I am making this post to ask what I should do at my age in order to put myself in the best position to run a successful real estate business in the future. However, as I mentioned earlier, I am only 20 years old, I am still enrolled in college, I am currently unemployed, and I don't have much savings in the bank. I just want to know what I should do in this situation to set myself up for real estate investing success so that once I am out of college with a well paying job, I can get into real estate investing ASAP. I don't want to wait until I have the money or until I am out of college to begin learning about real estate. I want to learn now so that once I am in a decent financial spot, I can start right away without wasting too much time. I am open to any tips or suggestions for the best way to begin educating myself on real estate. Just a reminder, I am a complete beginner. I mean COMPLETE beginner, to the point where I do not even know all of the basic vocabulary when it comes to real estate investing (terms such as subject to financing, creative financing, hard loans, etc. I do not understand whatsoever).
Hopefully I can get some responses about what I can do right now in order to be able to buy my first property by the time I have some money in the bank and am out of college.
There is a lot of free education on here and the web in general. Get the education first. Learn about all the different ways to invest in real estate. With little to no money you might want to look at wholesaling, seller financing, lease options, master lease option, and things along those lines. It will give you the chance to learn to talk with others and experience real estate with not much money. If you grind enough by driving for dollars you might find yourself face to face with an investor. The fact that your young, some might not take you seriously, but some might find nostalgia in the fact that you are starting so young.
As I said, education first is key, learn about the different approaches. Find the one that interest you the most and go for it.
That sounds like great advice.I think I will probably just learn what the types of investments that you mentioned actually are. Things like wholesaling, seller financing, lease options, and the rest the you mentioned are things that I do not understand yet. I think you're 100% correct to learn those concepts first, and then move on from there. Thank you!
1. Continue to educate yourself through BiggerPockets, books, etc. Ask questions on the forums. Find a local real estate investor meetup.
2. Finish college with as little debt as possible and get a job in your field. Save as much money as possible.
3. Work on building good credit. I’d recommend using a credit card but paying it off every month. This will go a long way, trust me.
4. Start networking to find a realtor and potential lender.
5. Find and buy your first property (do a house hack if possible).
6. At this point you’ll have a really solid foundation and will be building equity in your first property instead of paying rent like most people in their 20’s do.
I’m by no means an expert but did buy my first property about a month and a half ago. You don’t need a ton of money to get started. I bought a $225K property using a 5% down conventional loan. With the seller paying my closing costs I payed about $15K total out of pocket. If you can find a lender who will lend to you at no money down that’s great, but generally you do need to save up money for down payments and you’ll also want some cash in the bank for peace of mind. Best of luck man!
P.S. listen to bigger pockets episode 324. Their guest goes through the most important terms and concepts for multi family investing and also talks about “the law of the first deal.” I’ve learned a lot from the episode.
This is the exact response I was hoping to get from my post! Thank you so much for being so specific on what you think I should do. I am definitely going to spend a lot of time on this website researching certain terms I do not understand, as well as tuning into that podcast you mentioned, along with the other BiggerPockest podcasts.