Very young and very interested in real estate!

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Very young and very interested in real estate!

Benjamin Z.
Lincoln, NE · Member since 2013 · 8 posts · 0 votes

I'm typing this off of my smartphone so I apologize now for any spelling and grammatical errors. I got hired to work for a friend of mine for a week out in the middle of nowhere and forgot my laptop.

Anyway,

I would like to start by saying that I am 18 years old and will be starting school.at a local community college in about a month (I wanted to save some cash and not get thousands of dollars into debt immediately). My parents want me to go to a four-year university after this year. However, I do not. My parents want me to get a degree and would like me to be a journalist, a career I no longer have interest in.

Personally, I want to begin my career in real estate ASAP. A degree in my opinion is just a $100,000 piece of paper that really won't help me as much as actual experience would.

This brings me to my first question: is college worth it?

My parents certainly believe it is but a few people I've spoken to have given me a very different opinion.

Moving on,

My dream is to become a landlord and own several properties as well as possibly buy out or invest in several different companies in the future. To start, I've been wanting to buy a cheap $20, 000 home and rent it for $1000 a month or so. Paying for the mortgage with the rent and saving the rest of it up for a second investment.

I've begun to debate how good of a plan that is after reading around a bit here on BP and would like to hear some advice from many of the succesful people on here.

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Mike Nelson
Wholesaler · Washington, D.C · Member since 2011 · 449 posts · 94 votes
13y

I think you already know the answer to your question, @Benjamin Z. . As much as people, esp your parents will give you advises, sensible ones, in the end...you're the only one who knows what's best for you.

If you think that's really your dream, then honestly I don't think you need college to get it. But you'll need to still learn a lot and work really hard.

We are very blessed to have been existing in this particular period in human history, The Information Age. Knowledge has never been this easy to access. Today, you just go to Google and type practically anything and you'll get your answers. What I'm saying is, most of the things we used to pay for can now be accessed faster, for free.

This recent post http://www.biggerpockets.com/forums/517/topics/98680-great-guest-post-on-justaskbenwhy-blog-by-doug-dowell has a link to an article that talks about coursera.org. Check it out.

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  • Evan Stalcup
    Realtor · Cumming, GA · Member since 2013 · 27 posts · 11 votes
    13y

    I am 22 years old and in my last year of school. I am studying management so the things I learn I believe will help me with REI.

    Pros: education to always fall back on. It helps open up doors.

    Exposure to networking opportunities. Join an organization or a business fraternity where there is a huge network.

    You learn who you really are.

    Once in a lifetime experience.

    Helps you grow up

    Cons:

    Time consuming

    Can be a lot of money

    A lot of work with studying

    My advise, if I could do it again. Apply to every scholarship each semester.

    Get involved on campus in a couple of different organizations. Don't just go to class, study, and work.

    Take your gen ed classes at a cheap community college.

    Live with the parents to save money so you can use it to start your business.

    A lot of students end of graduating with student loans because they were to lazy to apply for scholarships, wanted to move away from home, and spent their spending money on booze. And went to big time college that could had received the same education at a smaller local school.

    I also stress its not the dipolma that will get you a job it will be your network. Thats why its so important to be involved.

    Hope this helps.

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  • Daren H.
    Real Estate Investor · Desoto, TX · Member since 2013 · 560 posts · 528 votes
    13y

    I think you have to look at the return on investment (financial reward and overall life reward). For me, college gave me opportunities to present myself to employers who would not otherwise look at me. It didn't get me the job, but it put me in picture and then allowed me to sell myself. The time and money investment for me has paid off in financial rewards but you WON'T hear me saying "I love what I do and cant see myself doing anything else".

    I think college is great and necessary if your main goal is to work for someone else and advance up some sort of ladder. If you are a hard working entrepreneurial thinker and have a "deep rooted" passion for what you want to do, your route may be different and college may not be as necessary. The one thing I would add is, I don't see how college would hurt you, regardless of what your final goals are. Isn't it great to be young with choices! Good Luck!

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  • Anthony Boston
    Rental Property Investor · Atlanta, GA · Member since 2013 · 16 posts · 1 vote
    13y
    Benjamin Z. I am in the same position you are in am 18 as well and i attend a community college i am thinking if transferring to a bigger school but i am not sure yet. In my opinion i think that the college degree itself isn't worth it but the college experience is and what i mean by that is the people you meet and the opportunity to network with like minded people and also the the bits and pieces of knowledge along the way that can be helpful. My plan is similar to your as well with the 4 plex and living in it while renting the other portions and also rent sfh's.
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  • Benjamin Z.
    OP
    Lincoln, NE · Member since 2013 · 8 posts · 0 votes
    13y

    Well looks like my real estate plans are on hold for now anyway. Have to be 19 in the state od Nebraska to sign a contract. Dumb law.

    0Reply
  • Evan Stalcup
    Realtor · Cumming, GA · Member since 2013 · 27 posts · 11 votes
    13y

    They are not over. This is a time to build capital and learn about the industry.

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  • Thom H.
    Investor · Central Virginia Area, VA · Member since 2012 · 80 posts · 28 votes
    13y

    Benjamin,

    I offer a question, why not do both? Consider taking community college classes toward a business or real estate degree to keep the cost down. There is nothing stopping you from also working while in college and possibly working toward an career in real estate. Either way, you will have multiple options. Why tie yourself to only one or the other option, when you can have both? You seem very smart and ambitious, put that ambition to work for you. Give yourself as many options as you can in life. You may not quickly find that $20k investment that lands you$1k per month, so why not have a backup plan (yes, a college degree J.O.B.), that can make you as much money as possible until you do find it?

    If it helps, I had the same thoughts many years ago at your age. I got a four year degree in Computer Science, and have always been glad I did. I paid for it on the ten year payback plan, so no silver spoon. And no, I don't still write computer programs, and haven't for years. I also built my first house at 19 yrs old, while in college. It wasn't easy. My parents thought I was crazy, and I'm sure they had a few sleepless nights over my eagerness to succeed at such a young age. I now also own a good number of rental properties, and have been successful at both a J.O.B. and REI. I learned many hard lessons over the years, but was never sorry I went to college (or that i got into real estate at such a young age). My point again, give yourself as many options in life as possible. You are young and capable of much more than you may realize. Neither a college degree or investing in real estate will be easy. Life will throw you many curves over a lifetime, and you may need all of those options at some point. So why not do both?

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  • Bill Mitchell
    Mansfield, TX · Member since 2013 · 207 posts · 26 votes
    13y
    Originally posted by Owen D.:
    As others have mentioned, college is not just about the degree and student loans. College is a life experience that you will likely never regret. You will meet people and form relationships that you will have for the rest of your life.
    My advice would be not to be in such a rush to grow up. Believe me, when the responsibilities and liabilities you have start piling up later in life, you will at some point look back on your college days as one of the best times of your life.

    Or maybe that's just me... ;)

    Do you understand how expensive college is today? This isn't highschool anymore its not like when I graduated from college. The primary reason isn't to form great memories or have the time of your life or have a major life experience, its to get the skills to find a good job afterwords. And you better try and do just that with the current tuition rates. Otherwise you will graduate under or unemployed with a massive pile of debt that has serious consequences and impacts when you can get married, when you buy your first house etc. In this environment you must grow up fast, because there are very real bills to pay after.

    College tuition right now is a total crime I can't believe it has gotten this out of control.

    1Reply
  • Benjamin Z.
    OP
    Lincoln, NE · Member since 2013 · 8 posts · 0 votes
    13y
    Originally posted by Evan Stalcup:
    They are not over. This is a time to build capital and learn about the industry.

    Couldn't of put it better myself!

    0Reply
  • Wade G.
    Houston, TX · Member since 2010 · 150 posts · 159 votes
    13y

    College...such a decision. Funny how our society views college. Here is what happens...most people spend way too much money, time, and effort to get some college degree all so they can get some stupid job that they hate and get paid too little for doing. It really makes no sense. The result is a life of quiet desperation. Having said that though I do believe that college is the best investment one can make IF DONE PROPERLY. By that I mean you should get a degree that society actually needs. Colleges are nothing more than businesses and they want to sell you a degree, so therefore they offer all kinds of degrees many of which should not be degrees to begin with. Society needs dentists, engineers, and medical doctors of all sorts for example. Those are real degrees that specialize you making you rare because not just any warm body can do the tasks required of those degrees. To just go to college because its what society says to do is possibly wasting valuable time. College can be a hinderance to your financial well being if done poorly.

    In regards to REI the people that I know personally that have done the best REI are highly trained professionals such as the ones I mentioned above. Reason why is their profession offered them the expendable funds for investing. Oh there are always those that had no money and bad credit and were handicapped and homeless etc,, etc,, and they are now millionaires via REI. I here those stories all the time and indeed there really are some that indeed earn a good living by investing in RE with little or non of their own money but its not the norm.

    The main point I wanted to make here is if you choose to get a degree then make sure it is one that counts and not some generic degree that certifies you to do nothing. I have one of those degrees and its just not worth it.

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  • James DuLac
    Real Estate Investor · Long Beach, CA · Member since 2013 · 9 posts · 1 vote
    13y
    As a recent graduate who is currently seeking full time employment (aka unemployed) in order to qualify for a loan to get into REI, this question is especially pertinent to me. My take: college was awesome and was some of the best times I've ever had. I created lasting friendships that I will probably have forever and to me that is somewhat priceless. Did I learn much? Not really. I received a BS in Business Administration from USC. When I talk to people or apply for jobs, do they think I learned anything? You bet. A degree will help people take you seriously. Was it worth the $30k in debt? Maybe not, depends on my career trajectory from here on out. The answer is really up to you. Starting with community college is smart, I did that as well. You save tons and get a similar education, just less prestigious. Focus on Real Estate and business classes and get your AA. Network hard because as others have said its about who you know. Good luck! Ps. Pro tip: Don't want to spend a lot on college but too young to qualify as independent for financial aid? Get a domestic partnership with a trusted friend. Same rights as a marriage and will qualify you as independent financially. Watch the grant money roll in. A friend and I did this and saved ourselves thousands.
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  • Shawn McMahon
    Northglenn, CO · Member since 2013 · 23 posts · 3 votes
    12y

    Being a senior in my last year of college, I can say all of these thoughts and considerations have entered my mind repeatedly. For me, I was already 2 years at a state university before I started to doubt the need for higher education. After leaving school twice, I can say I am glad I returned for a third time to finish it out. For me, I had already put myself in the hole thousands of dollars for a degree I wasn't really sure of. I wanted to quit so I could have my life and my sanity back. But leaving college with more debt and no degree seemed even more insane that sticking it out.


    College has been more than a time to gain a set of tools for a future career. College has been a time for wonderful memories you'll never forget. College has been a time for me to grow and realize what I truly want to do. What I want to do now is not what I started studying, but the process of college helped me figure all that out for me. You would be amazed the amount of maturity that takes place from 18 - 23. And It's not all about training for the corporate world. I got to take classes on psychology, sociology, religion, philosophy, writing, humanities, biology and astronomy. The Bio-Psycho-Social understanding of the world helped me generate a wider level of awareness of myself and the world around me, something that is truly invaluable.


    I've heard 1 out of 7 people retire doing what they went to school for. You may not end up where you think you would, but it will be worth the journey.

    However, this is just my perspective. College isn't for everyone. If you have a clear understanding of what you want and exactly how to get it, you may not need college. Do NOT go to college because someone else is telling you to do it. It may be hard since it is coming from your parents, but in the end, only you know what you want.

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  • Shawn McMahon
    Northglenn, CO · Member since 2013 · 23 posts · 3 votes
    12y

    Also,


    If you are afraid of the debt. When you are a seasoned investor, making the big bucks, raking in the dough, putting away deals on a monthly basis, are you going to feel the same about a 10k/20k/40k loan at that point in time? What about the 10k/20k/40k mistake that is bound to happen eventually. Will the 20k in a simple mistake or 20k in student loans hurt more? Equity and appreciation in just 1 of your future properties could be potentially enough to eliminate all your school debt.

    It is possible to go to school for the enjoyment of learning and gaining awareness. Why go to school for a SMET position for a SMET career? We are REI's to escape the idea of a 9 - 5 career. It may be the best way to capitalize on your investment, an idea highly popular in this circle. But education isn't meant to be examined in the same understanding as profit.

    0Reply
  • Paul Timmins
    Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    12y

    @Shawn McMahon

    Welcome. Build your foundation here.

    Check out the Start Here page http://www.biggerpockets.com/starthere

    Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

    Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having 50 past ones to catch up on.

    Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info.

    Consider checking out HUD homes for small multi's owner occupied gets first crack.

    You might consider Niche or Specialized Housing like student housing. This would be great for you. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

    Good Luck

    Paul

    1Reply
  • Loren Davy
    Investor · Kerrville Tx · Member since 2013 · 70 posts · 26 votes
    12y
    Is college worth the cost and the time? Depends why your going to college. Do you want a degree to help you get a "job" or do you want to learn things that will help you in your career of choice and in life? College is about more then the diploma. As stated above its great for networking with future professionals. It's also about learning a thought process of how to attack problems. Even if you don't want/need a degree take courses to learn the material; accounting, marketing, management, real estate, etc. These courses will help you as your real estate empire grows. Best of luck in your adventure.
    0Reply
  • Levi F.
    Real Estate Investor · soldotna, AK · Member since 2011 · 69 posts · 36 votes
    12y

    @Benjamin Z.

    Have you considered following your real estate dream while working on an online degree that will compliment your goals. You would be saving the massive cost of college and still improving your resume while learning viable tools in your field of choice. Knowledge is power if its the right knowledge. Plus, your parents might approve of your compromise. At this point in your life having any support is an advantage.

    Good Luck

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