I am 18 years old about to enter my sophomore year of college. I have been interested in real estate for a while and have done a good amount of research. I have a good amount of savings also, I hope by the end of the summer to have 5 digits. I do have a couple questions for you guys too if you would be so kind to answer them.
1.) Should I start looking into campus rentals near campus? Or should I start looking at multi-families in Rochester, NY? (I am 30 minutes away from there) Or none at all?
2.) Should I look to invest after college or pay off loans? I should have about 22.5k in debt with 6.4%.
I am looking to do rental properties, and I am the more business/numbers guy, and my friend wants to join in on the deals with me also. He is more of a construction/maintenance guy and can also put up some cash.
3.) Would he be worth partnering with for rental buy-and-holds?
4.) What would be the most efficient strategy for it to be fair and we get a lot accomplished?
5.)If I shouldn't be looking for any deals anytime soon, which I would love to do, what would be the best way to practice and get better at picking/analyzing deals? Or how could I shorten the learning curve?
I know this is a lot but it has been on my mind for a while.
@Kyle Alberry your young and smart for getting involved with REI at such a great age, but don't let your youth be a fault. I suggest you be patient and first attend a few local REI meet ups. Talk to other investors see what is working in your area. Reach out to Rochester members on BP they will tell you all the good events to attend and many will offer assistance. Rochester comes up a few times in the podcast as well. Quick answer to your question is network and tell other local investors your story/ situation and ask for opinions.
Have you decided where you want live after college? Invest close to where you live to learn the biz and use your sweat equity to save on maintenance costs.
@Chuck Holland I have not yet decided where I want to live yet. I am most likely going to go where the money is! And also I am not good at fixing/maintenance. That is why I want to partner with my friend.
@Shawn M. Thank you for the advice! i do not yet have a car, so once I have one in a month or so, I will network and check out those events!
It's impressive at 18 you are already interested in REI-that's great :)
1) What do you mean by 'looking into' campus rentals near campus? To purchase SFH's and rent them out to college students? I know a few people who are doing the SFH renting out to college students, but most of the time I tell my investors to look for multi-families. That being said: I personally don't make any broad conclusions without looking at each property and their own individual laurels-every property has unique [potential] assets. And every investor has potentially different returns that they are looking for.
2) If it was me-don't pay off your student loans all at once, take the money and invest. $22.5k is very manageable.
3) If you trust him and he has as much skin in the game as you, then explore it further. Talk to a lawyer (I can recommend some local attorneys for you to talk to). It's also a great advantage to have someone who is willing to put in sweat equity.
4) That will have to be a personal choice-whatever you guys agree to, is fair, and written into a contract!
5) Talk to someone who has been investing for a while :) You only learn by either working with experienced investors or by doing. At 18 you have a major advantage of having many many years ahead of you. I'd be happy to sit down and talk and answer questions you may have.
@Rebecca Lebowitz Thank you very much for taking the time to respond to respond to my post. I love the information! When I get a vehicle I may have to take you up on that offer on having me sit down and talk to you. I would greatly appreciate that!
Do some networking, and try and get on board with someone who will let you/show you how they look at various properties, analyze them, etc. You'll find lots of helpful people here on BP. Meeting up over a beer or coffee can be time well spent to build your network, and get to know people who have some experience and have likely made their own share of mistakes along the way.
I'd happily share some of my experience with you, but in reality, there are others with much more. I'm actually in the process of analyzing a few prospects at the moment, and could share some insight on what I'm seeing and doing currently.
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