Cheapest way to start real estate at 19?

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Cheapest way to start real estate at 19?

Mace Moseley
AL · Member since 2021 · 16 posts · 8 votes

I just became of age to get my real estate license. I really want to start working in real estate. I was wondering where and how I should start in the most cost affective manner.

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Tanner Crawley
Realtor · Lone Tree, CO · Member since 2017 · 139 posts · 112 votes
5y

@Mace Moseley
I think it is ridiculous people are saying you can't be successful as an agent because of your age. I do think you will probably have to adopt a different strategy. I would try educational content-based marketing focused on first-time homebuyers. Younger folks (AKA first-time buyers) have strong exposure to social media and that is where you can focus. These people will likely be younger and might view your age as a positive. Familiarize yourself with down-payment assistance programs, first-time homeowner programs, and the cheaper end of housing stock. If you can clearly communicate your expertise through video and written content I don't think your age will be an obstacle.

That being said many agents fail and it will certainly be harder for you due to your age. Also the longer you take to generate significant income the longer it will take for you to acquire properties. Most lenders require 2 years of self-employment income and honestly it will probably take you several years to achieve a strong income from RE brokerage alone. This could mean there are 4 more years before you make your first purchase.

If I were in your shoes I would still become licensed for my own personal use and as a potential side income. I would find a full-time job around the industry that pays you a salaried wage that you can use to qualify for a mortgage now so you can begin househacking. The more you are around the industry the more organic opportunities you will get. 

I agree with @Bruce Woodruff in that any construction experience is a HUGE VALUE. In many markets, there is lots of aging housing stock that needs significant repair/rehab. If you can speak to these items that is a huge-value for your clients.

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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    5y

    Get your license and then get a job in a RE office as an assistant/gofer. You're a little young to be taken seriously as an agent (just my opinion:-)

    Also, any construction experience you can gain will be a HUGE plus to you regardless of which exact RE path you take.....

    Follow this forum, lots of smart people on here....

    2Reply
  • Mace Moseley
    OP
    AL · Member since 2021 · 16 posts · 8 votes
    5y

    @Bruce Woodruff Thank you for the reply! And I definitely agree, I don’t think 19 would be taken seriously.

    0Reply
  • Joseph W.
    Rental Property Investor · Brooklyn, NY · Member since 2020 · 29 posts · 7 votes
    5y

    Work hard and save up about $50,000 and buy your first house!
    possible you will lose from the first one, but if you’re moving forward by the 25 you could be a millionaire!

    That’s my opinion

    2Reply
  • Allen McGlashing
    Investor · Cambridge, MA · Member since 2017 · 195 posts · 106 votes
    5y

    @Mace Moseley

    Depending on where you live the most cost effective thing to do to get started investing is to househacking. If your an agent that actually invests and understands investors that opens up your worth to a lot more people. Also start posting on here (BP forums).

    0Reply
  • Dan SheeksPro Member
    Rental Property Investor · Denver, CO · Member since 2016 · 621 posts · 362 votes
    5y

    Hey @Mace Moseley

    Congrats to you for your ambition! If you are looking to connect with someone for some guidance or advice, feel free to reach out. I also 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/

    [email protected]Podcast Guest on Show #179
    1Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    5y

    Do you want to get your real estate license to make money to invest or because you want to be an agent as a job? If you are interested in real estate, but your main interest is in investing, don't get your license now because there are costs associated with hanging your license and keeping it active. If you are interested in investing, the best thing to do is to go to local networking events and meet investors and see where you can eventually learn by offering some free help as a bird dog or driving for dollars. At 19 you just want to soak up knowledge and see as much as you can and talk to other who aren't trying to sell you a course or something.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
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    3Reply
  • Mace Moseley
    OP
    AL · Member since 2021 · 16 posts · 8 votes
    5y

    @Jonathan Greene Thank you for the reply! I would love to be an agent. I would also love to invest eventually. I’m not sure which I would want to do in the long run. I’ve done a ton of reading on both but there is still so much I need to learn.

    1Reply
  • Mace Moseley
    OP
    AL · Member since 2021 · 16 posts · 8 votes
    5y

    @Joseph W. Thank you for your reply! I’m definitely trying to save as much as possible.

    0Reply
  • Mace Moseley
    OP
    AL · Member since 2021 · 16 posts · 8 votes
    5y

    @Dan Sheeks Thank you for your reply! I will definitely read it and reach out to you!

    0Reply
  • Mace Moseley
    OP
    AL · Member since 2021 · 16 posts · 8 votes
    5y

    @Allen McGlashing Thank you for your reply and your advice! I will definitely be posting and reading here more often.

    0Reply
  • Isaac Johnson
    Rental Property Investor · Sioux Falls, SD · Member since 2019 · 129 posts · 138 votes
    5y

    @Bruce Woodruff hey now, I’m only 18 and I already have my license. No one even questions me really

    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    5y
    Originally posted by @Isaac Johnson:

    @Bruce Woodruff hey now, I’m only 18 and I already have my license. No one even questions me really

    Well, that's great then......Maybe there's a niche for you helping other young people, or anyone for that matter.

    I just know that if I were entering into a tricky deal, I would have to have someone very seasoned working for me.

    No offense meant, I think it's great you guys are getting started so early, I wish I had!

    1Reply
  • Isaac Johnson
    Rental Property Investor · Sioux Falls, SD · Member since 2019 · 129 posts · 138 votes
    5y

    @Bruce Woodruff

    It’s not really a niche thing at all, I just work harder than my competition, simple as that- anything that comes up where I’m unsure, I’m able to find the answer from a more experienced agent. Yes the experienced agent has more experience, but will they put as much time and effort into each client, not even close

    2Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    Unfortunately, there is no cost-effective way to get your license. But you can surround yourself with the industry to see if you like it first. If you do, then invest your money in yourself and get your RE license.

    [email protected]832-776-9582Podcast Guest on Show #469
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    0Reply
  • Nick Ruffini
    Rental Property Investor · Los Angeles, CA · Member since 2018 · 77 posts · 22 votes
    5y

    @Mace Moseley Totally disagree. If you want to be taken seriously, be professional. Your age has NOTHING to do with it and don’t let anyone tell you otherwise. Get that negative self talk out of your head.

    3Reply
  • Sonya Gulka
    Member since 2021 · 10 posts · 4 votes
    5y

    @Joseph W. I like your optimism, but with 50k, it became almost impossible to find a good deal in almost all owner friendly states with good cities.

    1Reply
  • Linda S.
    Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    @Mace Moseley,

    You have to be strategic , and know how to play the game... #1 to a bank is safety-- job security/income, get a reliable/stable job, after a year or two, save up the 3-5% of a house, then go to the bank and see how much they will loan you for your first SFH. Do this 4-5x, all the sudden you have a nice little portfolio with minimal cost/effort!

    0Reply
  • Kai Kopsch
    Real Estate Broker · Charlotte, NC · Member since 2016 · 569 posts · 351 votes
    5y

    @Mace Moseley

    The cheapest way is working for an season agent our team as an assistant our transaction coordinator they pay for your license and help you get started. See what the top agents do and start building your SOI.

    1Reply
  • Mace Moseley
    OP
    AL · Member since 2021 · 16 posts · 8 votes
    5y

    @Nick Ruffini Thank you for the encouragement! After sleeping on it I realized that it wouldn’t hurt trying and I should give it my all if I’m passionate about it.

    0Reply
  • Mace Moseley
    OP
    AL · Member since 2021 · 16 posts · 8 votes
    5y

    @Wale Lawal Thank you for the advice!

    0Reply
  • Mace Moseley
    OP
    AL · Member since 2021 · 16 posts · 8 votes
    5y

    @Linda S. Thank you for the reply! Excellent advice.

    1Reply
  • Mace Moseley
    OP
    AL · Member since 2021 · 16 posts · 8 votes
    5y

    @Kai Kopsch Thank you for the reply! I will start looking around for someone to work for!

    0Reply
  • Tanner Crawley
    Realtor · Lone Tree, CO · Member since 2017 · 139 posts · 112 votes
    5y

    @Mace Moseley
    I think it is ridiculous people are saying you can't be successful as an agent because of your age. I do think you will probably have to adopt a different strategy. I would try educational content-based marketing focused on first-time homebuyers. Younger folks (AKA first-time buyers) have strong exposure to social media and that is where you can focus. These people will likely be younger and might view your age as a positive. Familiarize yourself with down-payment assistance programs, first-time homeowner programs, and the cheaper end of housing stock. If you can clearly communicate your expertise through video and written content I don't think your age will be an obstacle.

    That being said many agents fail and it will certainly be harder for you due to your age. Also the longer you take to generate significant income the longer it will take for you to acquire properties. Most lenders require 2 years of self-employment income and honestly it will probably take you several years to achieve a strong income from RE brokerage alone. This could mean there are 4 more years before you make your first purchase.

    If I were in your shoes I would still become licensed for my own personal use and as a potential side income. I would find a full-time job around the industry that pays you a salaried wage that you can use to qualify for a mortgage now so you can begin househacking. The more you are around the industry the more organic opportunities you will get. 

    I agree with @Bruce Woodruff in that any construction experience is a HUGE VALUE. In many markets, there is lots of aging housing stock that needs significant repair/rehab. If you can speak to these items that is a huge-value for your clients.

    3Reply
  • Joseph W.
    Rental Property Investor · Brooklyn, NY · Member since 2020 · 29 posts · 7 votes
    5y
    Originally posted by @Sonya Gulka:

    @Joseph W. I like your optimism, but with 50k, it became almost impossible to find a good deal in almost all owner friendly states with good cities.

    Who need good deals? 😉

    My experience starts in February 2021 (not a good deal) with 70,000 dollars and now I am storing to negotiate a deal for $5 million 

    my experience is that once you get started you will have friends family who will ask you to take their money to invested 

    what do you need to do is just jump in and start the first deal,

    follow @BrandonTurner’s strategies and you will make it,

    That’s my opinion!

    1Reply
  • Mace Moseley
    OP
    AL · Member since 2021 · 16 posts · 8 votes
    5y

    @Tanner Crawley Thank you for being specific with what I need to be familiar with. I also love the idea of targeting a younger demographic. I’m currently still working on finding a job that could benefit my future in real estate.

    0Reply
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