Not so impressive until you realize he's just 12 when he put it under contract! I've read other stories of youngsters who purchased a property to rent out, but they aren't $552,000!
It's awesome that he is so young and interested in real estate and what great parents to encourage him at such a young age. But to be honest I'm way more impressed with a young adult under 25 years old who bought their first deal without the help of a rich family. Without the help from his parents there wouldn't be a story here.
It's awesome that he is so young and interested in real estate and what great parents to encourage him at such a young age. But to be honest I'm way more impressed with a young adult under 25 years old who bought their first deal without the help of a rich family. Without the help from his parents there wouldn't be a story here.
Regardless, that's very impressive. I know the daughter of one of our private lenders, who's 13 I believe does the legwork in finding properties for her parents to invest in. It makes me feel a bit like a slacker...
Regardless, that's very impressive. I know the daughter of one of our private lenders, who's 13 I believe does the legwork in finding properties for her /learnparents to invest in. It makes me feel a bit like a slacker...
I try not to compare myself to others because I don't think it's useful. That type of thinking leads nowhere positive. Instead, deciding and forming concrete specific goals and developing a specific plan to execute it, and finding mentors to help/learn from... i believe is a much better use of my time.
The life you have results from your choices. So, make the best choices that will help lead you to accomplishing your goal. One person's choices is no better than anyone else's, but really matters is what is it that you want out of life? If I were investing at age 10, and the trade-off would likely be giving up something else. That said, I built a lawn business @ age 13. I don't think doing that would be right for everyone, but it was something I wanted to do.
Though others can help, real estate investing is a solo endeavor.
The most important first step is to decide exactly what you want to achieve and often most people get started without putting enough time/effort into this.
Is it good to start investing at age 5, age 10, age 13?
That would depend... do people really know what they want yet at that age? Unlikely.
Would I wish that for my child? That would also depend.
Like I said, real estate investing is a solo endeavor.
@Account Closed, I wish I would have known too! I was selling candy to the neighborhood kids from my back porch. I was excited to make $30 to $40 per week!
I'm already teaching my 8 year old about investing. I hope to guide him in purchasing his first home by 18. Instead of saving for car with his first job, I hope to encourage him to use his earnings, for a down payment.
He actually gets the benefits of investing as oppose to just spending what one makes. He has an "account" for checking and an "account" for investing. He can't spend the inverting money until he finds a way to make more money with it. He purchased candy once and sold it for a profit to neighborhood kids. I don't expect him to have grand ideas. The point is to plant the seeds of financial intelligence earlier.
We discussed cash flow this morning
on the multi-family we are buying and factoring for expenses. I drew pictures to reinforce the concepts.
Just trying to give my kids a head start.
Looking forward to reading about the 12 year old!
Laura Williams I agree 100%. It is impressive, but there would be no story without the kid's rich parents guiding and aiding him. I'm 22 years old and still waiting/saving for my first deal. I first got interested when I was 16, but influence guided me into college where I came out with an engineering degree and a lot of debt. If only my parents were capable of buying me a $500,000 investment property...
It's awesome to see parents on this feed take an interest in their children's financial education. I have held multiple conversations in the past few months focused on the lack of financial education that is being provided in the scholastic system of the United States. It's up to the parents to ensure their child grasps financial concepts. I think it's great that the parents in this situation exposed their 12 year old to the world of investing. I plan to do that when I have children. I've got my fingers crossed, and high hopes, that I can afford to help them with a half million dollar home as well.
@Aaron Ray Thank you totally agree. Not to take away from the coolness of the story of a 12 year old owning property and how genius it is for a parent to teach their kids about investing at an early age. Hopefully I can do that for my kids too.....definitely a super smart thing to do. It's probably a much better investment than college as this kid will be financially free in 30 years once it's paid off.
But to me you can't compare this with a young person who's come from nothing and/or adversity that had to actually work at building up their credit score ...working several jobs to save up money for a down payment...begging for a bank loan without mommy and daddy co-signing....coming from a family who didn't teach them about money/real estate and having to self educate ... having no one to change their dirty diaper if they get in financial trouble like an eviction, repair, market downturn, or loss of job etc plus whatever other stress, guts and smarts it takes for those young people to buy a 500K house. I'll save my respect for the young BP-ers who fall in this category even if they happen to be a few years older than this kid.
@Account Closed Thanks John. That's a very good point about the legal aspect. And I agree it's very good thing for the parents to get the children into. The way that colleges and the job market are now, it's probably a better investment of money to just buy your kids some properties and get them into real estate at young age verses paying for their college education lol.
At 20, I am working on my first deal right now! Without BP, I would probably be so lost.
Great job Sean! That's a great early start! I did my first flips at 21, without knowing what I was doing. I did ok, but would've done much better had I focused and continued on that path back then, and had some guidance. There was no BP or web, etc, then, just the "No Money Down" TV guys.
You are fortunate to have resources like BP and others, to help guide and motivate you toward your goals. Keep leaning on us as you need to. :) Good Luck....and Good Skill!
Agree on the wealthy family comments. However, I do commend the parents for teaching the valuable investing skills.
When I was a kid in the early 80's, I cut grass, shoveled driveways, did all sorts of yard work, washed and waxed cars and babysat all the time. I competed with the other neighborhood kids for this work. I saved a lot of money during this time, which ultimately helped me avoid student loans in college (admittedly, college was cheaper then). I live in a similar neighborhood now and in 9 years I have never seen a kid perform or solicit any of these services in our neighborhood. How are kids learning these days about the value of hard work and money?
At least this kid is engaged & productive (on a grand scale and with a lot of help) in learning investing skills at a young age.
@Laura Williams@Dave G. I entirely agree with you that it is awesome what the parents are doing for the kid, I'm extremely jealous to be honest. All I'm saying is, I don't find it impressive on the kid's behalf.
This kid will be a millionaire by the age of 20 just through appreciation of the property value. But lets not look past, so we don't all feel bad. He did have some assistance SO THE PARENTS are the true heroes. That's some good parenting!
