20 years old buying first investment property

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20 years old buying first investment property

Tyler Shaa
Hamburg, NY · Member since 2015 · 4 posts · 0 votes

I have been having crazy dreams lately asking my self if I could really pull off buying an investment property at 20 years old. I am still in college. I don't have that much in assets and my credit is fair. I just want to know if I could really make this a reality. 

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Alyssa Pond
Nokesville, VA · Member since 2015 · 1 post · 1 vote
11y
Tyler, you can absolutely make this a reality. I'm 19 and I am also currently looking into buying my first investment property. It's a little nerve racking but that doesn't mean it's impossible! Besides, when it comes to investing, the sooner you learn how to invest, the better. The key to investing in real estate is time. I'm sure there are many people who wish they could have gotten started at 20. People tell me all the time that I'm thinking way ahead of most people my age! Most of my friends don't understand why I've got my mind set on doing this, but that's okay. I believe that God gives us dreams for a reason. If you have a strong feeling that you need to do something, then always listen to that feeling! My parents are real estate investors and I've been lucky enough to learn from them the importance of trusting your gut with decisions like this. Never ever doubt your own capability to make something happen, and don't listen to anyone who tries to tell you that anything is impossible. You can do this as long as you stay confident in yourself, you make educated decisions, and you have a little patience.
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  • Josh Caldwell
    Investor · Dallas TX, United States · Member since 2014 · 1k+ posts · 1k+ votes
    11y

    Yes, you can and dont you freakin listen to anyone who tells you that you cant.  There is a big national story about a 14 yr old girl from FL who started buying houses last year or so. Heck I wish I had known about real estate when I was 20. Push forward and get yourself out of the rat race before you turn 25

    To your success

    Josh

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  • Tyler Shaa
    OP
    Hamburg, NY · Member since 2015 · 4 posts · 0 votes
    11y

    Josh,

    Thanks a lot for the quick response. Do you have any suggestions that I can take away from you?

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  • Tyler Veres
    Rental Property Investor · Toronto, ON · Member since 2015 · 29 posts · 7 votes
    11y

    I bought my first property while in College with a buddy of mine.  He grew up on a farm and had been "paid" since he was about 9 years old (dad put money aside essentially) so he had quite a bit of cash after high school.  I did not (worked since 13 in the summers but that doesn't cover even close to post secondary costs.)  I received a government student loan (which didn't start charging interest until a year out of school at a pretty good rate that rides with prime).  I used this for my share of the down payment on the property.  This is fairly risky, but you can always get a student line of credit to cover off any unexpected education costs.  I worked while in school to make sure the bills kept being paid.  If you have access to this type of loan, may not be a terrible way to go as the interest on it is deferred and at good rates.  I would partner with someone to spread out the risk and to bolster your borrowing ability.  As a student in your local market, you should know it well.  (rates, expectations, etc.)  use this to your advantage in your first deal.  Hope this idea helps or at least gets you thinking about these types of loans.  I also understand it is much different here in Canada than it is in the States in costs of school and lending practices so take everything with a grain of salt. 

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  • Tyler Shaa
    OP
    Hamburg, NY · Member since 2015 · 4 posts · 0 votes
    11y
    Tyler, Thanks for advice. I'm actually looking into seeing how I could apply for the student room. I think at this point in time this is the only way to go for me. Any suggestions on how I could get started on getting the loan?
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  • Elizabeth Colegrove
    Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    11y

    we bought our first house at 23. I had wanted to buy much earlier but I had done so much better being an ra living rent free in campus. Keep your eyes open and you will find the perfect time!

    Just know that setting yourself up to be succesful isn't a loss. Even though I had watched the market since I was 13 and really actively since 19. This just meant that when we were financial stable and ready at 23 (although I guess stable might not be the right word lol) we have been able to baby step our way to 7 house in a little less than 4  years!

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  • Marcus Johnson
    Investor · Apple Valley, MN · Member since 2013 · 281 posts · 94 votes
    11y
    Please don't thinking using students loans as a DP. Remember they aren't bankruptavle should your plan fail.
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  • Tyler Veres
    Rental Property Investor · Toronto, ON · Member since 2015 · 29 posts · 7 votes
    11y

    I dont want to suggest a crazy number for using a student loan as a DP. I'm thinking like 10-15k.

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  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    11y
    Originally posted by @Tyler Shaa:

    I have been having crazy dreams lately asking my self if I could really pull off buying an investment property at 20 years old. I am still in college. I don't have that much in assets and my credit is fair. I just want to know if I could really make this a reality. 

    Awesome stuff mate,

    I love reading this stuff.

    You are 3 years younger than when I started.

    Pump the job everyday and surround yourself with good people.

    Thanks and see you around the forum

    Podcast Guest on Show #89
    Oz Realty4.5368 Reviews
    WebsiteView Page
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  • Account Closed
    El Segundo, CA · Member since 2015 · 13 posts · 3 votes
    11y

    @Tyler Shaa

    Finding a good deal would be the first step but you definitely can do it. Get a good understanding of the area you're in. If they're students, I'm assuming you will have some extra operating expenses/collections issues so be careful locking in to a high interest loan. There are private lenders all over BP so if you find a deal good enough I'm sure they'd help you out. You can also check out the "first time homebuyer's credit" deal and look into an FHA loan.

    0Reply
  • Alyssa Pond
    Nokesville, VA · Member since 2015 · 1 post · 1 vote
    11y
    Tyler, you can absolutely make this a reality. I'm 19 and I am also currently looking into buying my first investment property. It's a little nerve racking but that doesn't mean it's impossible! Besides, when it comes to investing, the sooner you learn how to invest, the better. The key to investing in real estate is time. I'm sure there are many people who wish they could have gotten started at 20. People tell me all the time that I'm thinking way ahead of most people my age! Most of my friends don't understand why I've got my mind set on doing this, but that's okay. I believe that God gives us dreams for a reason. If you have a strong feeling that you need to do something, then always listen to that feeling! My parents are real estate investors and I've been lucky enough to learn from them the importance of trusting your gut with decisions like this. Never ever doubt your own capability to make something happen, and don't listen to anyone who tries to tell you that anything is impossible. You can do this as long as you stay confident in yourself, you make educated decisions, and you have a little patience.
    1Reply
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