Want to get into Real Estate investing
New to Real Estate · Waukegan, IL · Member since 2021 · 3 posts · 0 votes
Hey guys, I'm currently 18 years old and I really want to get into real estate investing but I'm not sure what I should do or how I should get started. I've considered wholesaling, but I live in Illinois and they require a wholesaler to have a brokers license. Do you guys have any advice/tips?
Hey Damian,
Good on you for starting so early brother! Really cool to see. Earlier the better, even if its just you studying the subject for a couple of years before the first deal OR if you decide to jump on something and learn that way!
The way I got started was that from the ages of 17-21 I had been saving like 80% of my income and eating like a dog. I knew I wanted to get into real estate but didn't know how to really get the ball rolling. I had been able to save up just shy of $25K with no debt at all, to help the DTI. Don't carry any bad debt.
Then one day I was talking to my mom about wanting to get into a house/rental property to buy and live in and essentially "house hack". My mom isn't the investment type but regardless of that, she said to talk to the broker they had used in the past for a home they bought for themselves to live in.
This broker just so happened to have 24 rentals which equaled 72 units at the time it ranged from commercial to small multi and single family. (something really cool is that she also started at 18!). You should find a broker that understands the space!
So this lady knew what she was doing. She helped my find something in the multifamily space and I closed on a triplex.
I used an FHA Loan with 3.5% down at 4.125% interest. (to get into the property it cost less than $5,000)
Then the work started, LEARNING and GROWING PAINS (I knew zero about anything with this type of project) , rehabs, new leases, raising rents, etc.
Fast forward to today its worth $130k more only after 3 years so far and I have a HELOC on it as well as a refi with 3.0% interest and am looking for my next one to get.
Just keep your eyes open and save your money, don't blow money on things you don't need. The seed you plant today will feed you later in life man. Don't get discouraged.
Another obstacle which I think I have finally overcome, is the age factor. Could have been just me, but getting lenders and brokers to take you serious at such a young age is difficult. If you define what you want out of them and what you want the deal to look like, they will give more of their efforts to you. Like Brandon on the podcast keeps saying, make your crystal criteria of what you want.
Hope this answered at least one question you may have.
(I have never done a wholesale deal, but I could have been doing it the hard way. not saying my way was the right way)
If you want to know anything else or have any questions feel free to reach out, Good luck!
@Damian Cardenas Learn all you can about the real estate industry. Being 18, I am sure that almost all of us wish we could of started learning the ins and outs then. Right now, you may not have the ability to do a deal but you can learn terminology, lending practices, how to analyze deals, etc. so when the time comes, you are MILES ahead of anyone of your peers who are just starting the process. You could also try and hook up with some investors and figure out ways to provide value to them and get that "hands on" experience. Good luck!!!
@Josh Mitchell Thanks Josh, I appreciate the input!
Hey Damian,
Good on you for starting so early brother! Really cool to see. Earlier the better, even if its just you studying the subject for a couple of years before the first deal OR if you decide to jump on something and learn that way!
The way I got started was that from the ages of 17-21 I had been saving like 80% of my income and eating like a dog. I knew I wanted to get into real estate but didn't know how to really get the ball rolling. I had been able to save up just shy of $25K with no debt at all, to help the DTI. Don't carry any bad debt.
Then one day I was talking to my mom about wanting to get into a house/rental property to buy and live in and essentially "house hack". My mom isn't the investment type but regardless of that, she said to talk to the broker they had used in the past for a home they bought for themselves to live in.
This broker just so happened to have 24 rentals which equaled 72 units at the time it ranged from commercial to small multi and single family. (something really cool is that she also started at 18!). You should find a broker that understands the space!
So this lady knew what she was doing. She helped my find something in the multifamily space and I closed on a triplex.
I used an FHA Loan with 3.5% down at 4.125% interest. (to get into the property it cost less than $5,000)
Then the work started, LEARNING and GROWING PAINS (I knew zero about anything with this type of project) , rehabs, new leases, raising rents, etc.
Fast forward to today its worth $130k more only after 3 years so far and I have a HELOC on it as well as a refi with 3.0% interest and am looking for my next one to get.
Just keep your eyes open and save your money, don't blow money on things you don't need. The seed you plant today will feed you later in life man. Don't get discouraged.
Another obstacle which I think I have finally overcome, is the age factor. Could have been just me, but getting lenders and brokers to take you serious at such a young age is difficult. If you define what you want out of them and what you want the deal to look like, they will give more of their efforts to you. Like Brandon on the podcast keeps saying, make your crystal criteria of what you want.
Hope this answered at least one question you may have.
(I have never done a wholesale deal, but I could have been doing it the hard way. not saying my way was the right way)
If you want to know anything else or have any questions feel free to reach out, Good luck!
@Jared Johnson Thanks Jared, essentially house hacking was one of the strategies that I felt like would be the easiest for me to get started, just to get my feet wet and learn the basics. I can relate to some of the things you said, but I really appreciate the advice.
Hey @Damian Cardenas
Congrats to you for your ambition! I work with a bunch of young aspiring real estate investors just like you (in a free online group), and I am willing to help you out with some advice or even chat on the phone if you wish. But first 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. I am a high school teacher in Colorado and I am always looking to help young people get started in real estate investing or help in any way I can. Let me know if you want to chat sometime. https://www.biggerpockets.com/...
@Damian Cardenas consider getting your real estate license, it will educate you on the buying/selling process and also save you a good bit of money if you can act as your own agent.
Key term: REIA = Real Estate Investors Association.
Since you are north of Chicago I would recommend you join Jane Garvey's group the "Chicago Creative Investors Association" (Chicago CIA). They meet on the third Sunday night in Lombard, IL. Join the group and volunteer to help with meetings. Get the knowledge spilled by being in the right place at the right time. Her group or REIA is a Chapter of the National Real Estate Investors Association.
There are lots of "Gurus" who charge Tens of Thousands of dollars for their "only in town this weekend" get rich quick seminars. They come in town to sell you their information and that is it, it is just a sales conference. The ratio at almost any of these seminars is about 40 percent Inspiration, 40 percent perspiration and 20 percent information. The perspiration is them sweating you to spend upwards of $20,000 on a future course or event. I have seen too many wanna be investors go broke learning and then have nothing left to invest.
Join your local REIA and learn what is happening WHERE you invest. That is about $200.00 a year for a great education. The speakers and topics are great, but some of the best learning takes place after the meeting at dinner someplace. Jane usually asks the speaker to come with members of the group for dinner. Be there as well as the meeting.
@Damian Cardenas Depending on what you want to do with your life, becoming a broker is a great career if you're interested in sales. If you have a good mentor and high motivation, you can make very good money relatively quickly. Obviously the sales cycle is pretty long but if you have something that can get you by the first few months you can do well. You get to meet a lot of people in the industry this way while also earning money. If you're ambitious and entrepreneurial, it's the best job in the world.
Hey guys, I'm currently 18 years old and I really want to get into real estate investing but I'm not sure what I should do or how I should get started. I've considered wholesaling, but I live in Illinois and they require a wholesaler to have a brokers license. Do you guys have any advice/tips?
Since you want to get into wholesaling I recommend you find an investor-friendly realtor & become a Real Estate assistant. In this case, when I say investor-friendly I mean someone who "wholesales". You can do one deal without a license but working with that realtor you can learn the ropes. While learning the ropes you should also get your license.