Real Estate Investor · Buffalo, NY · Member since 2013 · 53 posts · 5 votes
Hello all BPers,
My name is Zachary and I am 20 years old. I am going to be brutally honest.
I've never been comfortable living inside the "box" that society puts us in.
Unlike all of my friends I have never gotten a part time job as a cashier or any
simple minded profession. There's a down side to that too but I digress. My point being I want to own property and generate passive income, I don't want to sit in an office until 9 to 5 worrying about how I'm going to pay the bills.
To make this happen I need a starting point. Like I said I am 20 years old,
unemployed, and no credit. I want to know if anyone on here has some
suggestions on how I can acquire some real estate. I am aware of wholesaling
but not really all that thrilled with the idea.
Does anyone who some no money down strategies or ways that I could go about getting some rental property.
Any thoughts or opinions would be greatly appreciated.
Wholesaler · Salt Lake City, UT · Member since 2009 · 1k+ posts · 401 votes
13y
Don't like the concept of wholesaling but want to just collect rents and spend the income. I have news for you, landlording is work until you are in a place where others can do everything for you and unless you hit the big lotto it is going to take a lot of work to get their.
So as long as you have to work, learn wholesaling, and cherry pick a rental to hold long term for yourself every now and then. And when you have cherry picked how many you need to provide the lifestyle you want, life will be nice.
As for the real estate license thing, if you want to make money with it that requires work too, ask one of the many agents leaving the business each day because they jumped in thinking how easy it would be and finding out you didn't get a paycheck for just showing up. The old qoute about 90% of success is just showing up is true but it is the other 10% that puts the money in your pocket.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
13y
Zachary S. I can relate as I have always been an out of the box guy myself.
If you have no money credit or experience wholesaling is about the only place you can start. There are different forms of wholesaling like commercial properties, land, lease options etc. You may find one that suits you.
Although tough to do these days you can find no money down deals but Can yo pull them off with no experience? Many are done with private money. Who will lend to you without that experience?
Perhaps most importantly, holding rentals takes cash reserves. Even if you can get the property, what do you do when the first problem comes up and you have no cash reserves?
Wholesaling can be a method to build cash in order to buy properties to hold for passive cash flow. You have to start somewhere. Good luck - Ned
Miami, FL · Member since 2012 · 612 posts · 189 votes
13y
As the market improves and price edge their way back to 2006 values, the wholesale market is going to get tighter and tighter. I am not sure if this is worth getting into.
I applaud your efforts and mindset. Your path is going to take planning and perseverance. I would focus on getting steady work and building some credit. Passive income requires cash to get started.
As to investing without cash and much experience, you could look into land contracts or lease options. There is the option of getting your real estate license and work for a while with a real estate company (cash and experience).
Wholesaler · Salt Lake City, UT · Member since 2009 · 1k+ posts · 401 votes
13y
Don't like the concept of wholesaling but want to just collect rents and spend the income. I have news for you, landlording is work until you are in a place where others can do everything for you and unless you hit the big lotto it is going to take a lot of work to get their.
So as long as you have to work, learn wholesaling, and cherry pick a rental to hold long term for yourself every now and then. And when you have cherry picked how many you need to provide the lifestyle you want, life will be nice.
As for the real estate license thing, if you want to make money with it that requires work too, ask one of the many agents leaving the business each day because they jumped in thinking how easy it would be and finding out you didn't get a paycheck for just showing up. The old qoute about 90% of success is just showing up is true but it is the other 10% that puts the money in your pocket.
Miami, FL · Member since 2012 · 612 posts · 189 votes
13y
Brian P. the reality of the real estate industry is that all aspects require work. There is no free money out there. Even wholesaling requires a considerable amount of time. Anyone who jumps into real estate after listening to the mountain of dribble that you can make millions off a $1,000 investment is going to be sadly disappointed.
Wholesaler · Salt Lake City, UT · Member since 2009 · 1k+ posts · 401 votes
13y
Simon
I agree with you completely and that was the point of my post. As I read yours I felt you didn't get the message I was sending or I didn't think wholesaling is work. Later in my career as an investor and a broker I had many people ask me to mentor them but only a few of the many wanted to pay the necessary price by actually working and taking action.
The worst case was the son of one of my best friends that I was asked to mentor. The son's idea was I do all the work and he would wait for a big check in the mail which would require him to interrupt his game boy time. or his nap, to go get. When his father asked me how things were going I said as far as I can tell you son's idea of a career is to enjoy himself as much as possible with as little effort as possible and to continue that lifestyle as long as he can on his large and expected inheritance. Poor kid almost had a break down when old dad told him him that he and his mother had adjusted the wording in their wills and trusts, and he had 90 days to find a job and a new place to live.
Miami, FL · Member since 2012 · 612 posts · 189 votes
13y
Brian P., I had to laugh after reading your last post. That seems to sum up many in this new generation. So many view real estate as easy money but the reality is that is requires a lot of time, focus and endurance to make a living at this. Patience is another important factor and a Playstation addict rarely possess this quality.