Early stages of investing, looking for advice for beginners

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Early stages of investing, looking for advice for beginners

Kyle R Vreeland
West Milford, NJ · Member since 2021 · 10 posts · 4 votes

Hi everybody, I’m a 22 year old looking for general advice to guide me in the right direction. Ive been interested in real estate for some time now and I decided that this is something I’d really want to pursue in the near future or as soon as possible.I currently work full time, and I’m having trouble finding a direction to go financially to fund my first deal. I currently am paying off student debt ($6500) which I feel is holding me back. Is it possible to start investing now or would it be a good idea to wait and pay off my debt first ?! Any advice would be appreciated, thank you !

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George W.
Investor · NJ · Member since 2018 · 869 posts · 921 votes
5y

When you say start investing now what specifically are you looking to do? Buy & hold? Flipping? Brrr? House hacking? Wholesaling? 

There's alot of diffrent avenues you can go investing in RE. 

I'd recommend to continue learning about investing and pay off debts but more importantly acutally save money. Figure out a monthly budget for yourself and start paying your savings account like it's another bill every month. If you analyze your spending habits, there is almost always a category where expenses can be cut easily to fund your "monthly savings" bill. 

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  • Chris James Hariski
    New to Real Estate · Ottawa Ontario · Member since 2020 · 23 posts · 19 votes
    5y

    Hello Kyle,

         Well done picking what you want so early in your life. I did a similar thing but I jumped into being a real estate agent (realtor). There are many different ways to start out and by all means do not look at your student debt as holding you back. Some creative tricks are easily accessible to you. I found that talking about my passion for Multi-family rentals has opened so many doors for me. Basically I work a full time job and invest as well. Every conversation I have I let people know what I do. It took me about  months before my passion and open conversations brought me investors. These are people I met and built a relationship with that one day came to me and asked if they could give me their money to get into the investing I do with Multi-family homes. This is just one example of what you can do. @Brandon Turner has a book that is really helpful as well. The title is crazy long but I think it is something like "real estate investing with low and no money down" I read this book during my first month of knowledge acquisition and it really opened my creative eyes on how I could invest without my own debts holding me back. I hope this helps feel free to reach out if you would like to discuss more options.

    1Reply
  • George W.
    Investor · NJ · Member since 2018 · 869 posts · 921 votes
    5y

    When you say start investing now what specifically are you looking to do? Buy & hold? Flipping? Brrr? House hacking? Wholesaling? 

    There's alot of diffrent avenues you can go investing in RE. 

    I'd recommend to continue learning about investing and pay off debts but more importantly acutally save money. Figure out a monthly budget for yourself and start paying your savings account like it's another bill every month. If you analyze your spending habits, there is almost always a category where expenses can be cut easily to fund your "monthly savings" bill. 

    2Reply
  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    5y

    @Kyle R Vreeland Tough to give answer without asking more questions.  Why do you think 6500 is holding you back?  

    973-975-3895
    House Hacking New Jersey563 Reviews
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    1Reply
  • Kyle R Vreeland
    OP
    West Milford, NJ · Member since 2021 · 10 posts · 4 votes
    5y

    @Chris James Hariski Hi Chris, first off thank you for your advice. I can’t wait to dive into Brandon turners book to see the options and routes I can go... as somebody that isn’t too familiar with how to start, your feedback gave me a clear sight on where to begin. I’m sure I will have more questions as I begin my education of the real estate world and I will keep you in mind ! I appreciate your time

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  • Kyle R Vreeland
    OP
    West Milford, NJ · Member since 2021 · 10 posts · 4 votes
    5y

    @George W. Hey George, I’m more specifically interested in house hacking to initially start. I started a budget beginning of March and already noticed a drastic change in the way I managed my money. Still have work to do and I have to evaluate more ways to save. Thank you for the tip on making a payment towards my savings that will go a long way, I just have to be consistent from here on out , much appreciated !

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  • Kyle R Vreeland
    OP
    West Milford, NJ · Member since 2021 · 10 posts · 4 votes
    5y

    @Shawn Mcenteer Hi Shawn, the reason I feel it’s holding me back is my lack of knowledge with money. I was never taught how to manage my money when I took over my student loan at the age of 18. This past year I started dedicating time to educate myself on how finances work and how to save more than I spend in order to eliminate bad debt.. I’m just overwhelmed and intimidated by the remaining balance, I’m just trying to change my mindset and be positive going forward towards my future goals and feel stuck in a rut sometimes. Thank you for taking time to respond !

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  • Chris Pasternak
    Real Estate Broker · Pueblo, CO · Member since 2013 · 368 posts · 303 votes
    5y

    Way more substance needed such as are you married to the girl in the photo and is she on board?  Do you have life insurance if married? What is your income? Do you currently own or rent?  If you've never bought a house and are married you should buy a primary residence first.  Someone on here will tell you to house hack.  It's great that the tenant lives next door.  It's also bad that the tenant lives next door.  Also, you're going to be selling to investors with a multifamily and they want a deal.  Single family can sell to retail buyer. Yes pay off all debt first before investing.  I can tell by your post you lack patience, get more first.  That's my advice for beginners.

    1Reply
  • Ryan Herting
    Lender · Philadelphia, PA · Member since 2020 · 139 posts · 103 votes
    5y

    Hi Kyle R Vreeland,

    First, congrats on deciding on your career path, and welcome to the investing fam. I get how it could be stressful with student loans holding you back from your passion. With that being said, there is always a way to achieve what you want to accomplish. To answer your question, I recently recommended to a newbie investor some advice on getting her investing career going. She's around the same age and most likely in the same financial position. House hacking is a great way to start your career, but if you feel this might put too much of a financial strain on you, I would recommend first investing in a deal that you can learn the ins and out of.

    To do this, I would find someone you trust and who has had experience with Brrr, fix and flip, or house hacks, etc prior. You can invest however much you would like in the deal, and depending on what your terms are, you would then collect the interest. Make sure to be as active as you can the during deal and or construction process.

    What you will gain here, in addition to your interest collected, is knowledge and experience. And now that you got your feet wet, you can either revisit this strategy or move forward on doing a deal yourself.

    Hope this was helpful.

    1Reply
  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    5y

    @Kyle R Vreeland its a lot to take in right now.  Stay active on BP and you'll be fine.  I am not far from you, happy to connect some time if you need some input.

    973-975-3895
    House Hacking New Jersey563 Reviews
    WebsiteView Page
    1Reply
  • Kyle R Vreeland
    OP
    West Milford, NJ · Member since 2021 · 10 posts · 4 votes
    5y
    Originally posted by @Chris Pasternak:

    Way more substance needed such as are you married to the girl in the photo and is she on board?  Do you have life insurance if married? What is your income? Do you currently own or rent?  If you've never bought a house and are married you should buy a primary residence first.  Someone on here will tell you to house hack.  It's great that the tenant lives next door.  It's also bad that the tenant lives next door.  Also, you're going to be selling to investors with a multifamily and they want a deal.  Single family can sell to retail buyer. Yes pay off all debt first before investing.  I can tell by your post you lack patience, get more first.  That's my advice for beginners.

    @Chris Pasternak Hi Chris, I'm currently not married yet but we've been together for the last four years! She is definitely on board and is supportive with my decision. My current gross income is $39,000 a year, based on a regular 40 hr work week not including overtime. I'm still at home living with my mother and pay $250 /mo as my share for rent. I'm working on cutting my expenses down and saving as much as possible. I'm definitely leaning towards a house hack to start off, I feel that's the best route for me considering my girlfriend goes to school in Michigan and is out there for most of the year. Thank you for the advice I will be patient and stay focused on the main goal!

    1Reply
  • Kyle R Vreeland
    OP
    West Milford, NJ · Member since 2021 · 10 posts · 4 votes
    5y
    Originally posted by @Shawn Mcenteer:

    @Kyle R Vreeland its a lot to take in right now.  Stay active on BP and you'll be fine.  I am not far from you, happy to connect some time if you need some input.

    @Shawn Mcenteer  Yes sir it is a lot right now, I'm going to learn everyday ... and absolutely. I see you're in Boonton, I have some family ties in that town.. thank you again for the help and I'll keep in touch!

    1Reply
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