What Should a 17 YO Do To Setup Themselves for Commerical REI
Rental Property Investor · Pittsford, NY · Member since 2016 · 32 posts · 8 votes
What Should a 17 YO Do To Setup Themselves for Commerical REI
Most Popular Reply
Stephanie P.Pro Member
Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votesOriginally posted by @Brett Abamonte:
Hello everyone on BP,
I am 17 years old and hungry to invest in Real Estate. I’ve been consuming books and articles on real estate investing and money. But I was wondering what suggestions people who’ve gone through it would give if they were 17 and looking to invest in MF and commercial real estate. Financially, lifestyle, anything
I appreciate your responses!
Hey Brett
Nicely done on your career path. I'm going to take a different tack on this and say that you should either stay in school through college (learn accounting or become a lawyer to hone your logical thinking skills) or learn a solid trade (electrician, plumber, carpenter). Both of those paths require some money and time. While you're doing that, you can house hack (if you have a job and the reason to learn a trade or go to college) so you can build your wealth with a solid foundation; not to mention being a landlord means you have to have a basic understanding of finance, law and many facets of construction.
Don't spend too much on college. Community colleges are significantly cheaper than 4 year schools unless you get a scholarship or grant and you transfer to get your degree and for your purposes, a cheap law school will get you to pass the bar. It just depends on which way you want to go and what you're good at. I have a kid who's interested in real estate and he got a job working in the closing department at a large lender. Now he's in law school and is leaning toward real estate law. He would be a terrible electrician/plumber or carpenter, but he thinks like a lawyer. Do what you're good at. Read books on predictive indices and there's a great book by the Gallup organization called Strength's Finder. Helps you to focus on what you're good at and leave the other stuff to others.
Best of luck
Stephanie
25 Replies
- Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes7y
@Brett Abamonte first of all congratulations for thinking about this stuff so early in life. Time is the most valuable resource in investing, so you will be in a great spot investing early.
Secondly, focus on building your credit early on. This is fairly simple to do as you can open a credit card and use it to by the normal stuff. I used to use mine when I went out to get fast food, etc. Just make sure to always have cash in the bank for the purchases, and then pay of the CC every month before you pay interest.
Lastly, focus in on whatever career you decide to do, and get through your schooling for your career with as little debt as possible. If you are going to be an entrepreneur, even better!
As soon as you can start investing, buy the best properties you can afford, not the cheapest properties. Make sure your properties cash flow, but starting at 17 you will be really, really happy as a 47 year old to have great quality properties!
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes7y
I recommend you build a strong foundational understanding of real estate investing.
1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by @Brandon Turneror The Unofficial Guide to Real Estate Investing by Spencer Strauss.
2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control your finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by @Scott Trench , or The Total Money Makeover by Dave Ramsey.
3. As you read these books, watch the biggerpockets podcasts. This will help clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.
4. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. Biggerpockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.
5. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.
You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.
Buckle in, keep your arms and legs in at all times, and enjoy the ride!
The DIY Landlord Book4.7247 Reviews - 7yRonald RohdePro MemberAttorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
That's some pretty advanced advice for a 17 year old. I would recommend you study accounting, real estate, business in school. Focus on savings and learning small pieces of REI.
I would try to save $50-100k and buy a 4 plex once I have confidence in my own ability to repair toilets, paint a room, demo a floor, etc.
@Brett Abamonte Best bet would to have a rich father/uncle/aunt who bequeath the majority of their estate to you. Short of that, going to college and learning as much as you can about accounting/finance/management while saving money.
- Rental Property Investor · Pittsford, NY · Member since 2016 · 32 posts · 8 votes7y@John Warren Thanks for the advice, when it comes to building credit would you suggest doing a secured loan to help accelerate the credit building process?
- Rental Property Investor · Pittsford, NY · Member since 2016 · 32 posts · 8 votes7y@Nathan G. Thanks for the advice Nathan! I appreciate your honesty for the time line it takes to build a strong real estate portfolio. I definetly will learn as much as I can, set goals, and just go for them!
- Rental Property Investor · Pittsford, NY · Member since 2016 · 32 posts · 8 votes7y@Ronald Rohde Thanks for the response Ronald! Why would you suggest a 4-plex to start over other options?
- 7yStephanie P.Pro MemberWashington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
Originally posted by @Brett Abamonte:
Hello everyone on BP, I am 17 years old and hungry to invest in Real Estate. I’ve been consuming books and articles on real estate investing and money. But I was wondering what suggestions people who’ve gone through it would give if they were 17 and looking to invest in MF and commercial real estate. Financially, lifestyle, anythingI appreciate your responses!
Hey Brett
Nicely done on your career path. I'm going to take a different tack on this and say that you should either stay in school through college (learn accounting or become a lawyer to hone your logical thinking skills) or learn a solid trade (electrician, plumber, carpenter). Both of those paths require some money and time. While you're doing that, you can house hack (if you have a job and the reason to learn a trade or go to college) so you can build your wealth with a solid foundation; not to mention being a landlord means you have to have a basic understanding of finance, law and many facets of construction.
Don't spend too much on college. Community colleges are significantly cheaper than 4 year schools unless you get a scholarship or grant and you transfer to get your degree and for your purposes, a cheap law school will get you to pass the bar. It just depends on which way you want to go and what you're good at. I have a kid who's interested in real estate and he got a job working in the closing department at a large lender. Now he's in law school and is leaning toward real estate law. He would be a terrible electrician/plumber or carpenter, but he thinks like a lawyer. Do what you're good at. Read books on predictive indices and there's a great book by the Gallup organization called Strength's Finder. Helps you to focus on what you're good at and leave the other stuff to others.
Best of luck
Stephanie
- 7yKerry BairdPro MemberRental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
@Stephanie P., I'm so glad to see your response. The OP would be wise to consider your advice.
-My son is 15 and struggling to find his strengths, yet he is very young to have much experience outside the home. We were thinking the ASVAB, which sorted us for our jobs in the Air Force, would be useful. While the military is familiar to my son, he has seen the downsides with our high deployment rates.
-Your comments about community college are also spot on, in my opinion. Student loans are onerous!
-Similar to your son working in a bank, one of my first jobs was pulling credit as an assistant to a VP of lending. I have never forgotten the lessons from that experience, as she was always saying No, due to low credit scores. I learned what was necessary to get to Yes.
-I looked up the link for the folks behind the Strengths Finder. We are going to take this advice in our family. Thanks!!
- Rental Property Investor · Annapolis, MD · Member since 2011 · 232 posts · 170 votes7y
@Brett Abamonte Wow...17 and already seeing the big picture of how real estate can set you up for life. Truly jealous man! What has got you interested and focused to this point?
My suggestion would be to save as much as you can and set yourself up with a strong financial base. Do not get into any consumer debt, build an emergency fund and get a degree with as little student loan debt as possible.
At the same time study and network as much as you can. Find a mentor who you can work for free for. In exchange they will be teaching you and by the time you get out of college (if not before) you'll be well on your way.
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes7y
Decide if you want to do real estate as a career and business or it's will only be a small part of your life for investment over time.
That to an extent might dictate how things are set up. As much as people like to try to set up every aspect of their life and plan it the reality is life at any moment can throw us a curve ball and instantly redirect our plans.
If your plan is to not make a career out of real estate then you need to heavily analyze the career you are currently looking at. Many students are pushed by parents to go to college as they see it as a safety mechanism. The problem is many people view college as the pinnacle of learning. It is not. It is simply another building block of knowledge and experiences but lifelong daily learning is the key to fully accept who you are today and be happy about it but at the same time work to create an even better version of yourself for tomorrow. These small yet at the time seeming insignificant small changes add up to massive improvement over time. It is the difference in some being average to good in their field versus WORLD CLASS.
Most student debt cannot be wiped out in bankruptcy. Parents push kids to go the first 2 years and hope they figure out what they want to do and choose a degree in something. If the market is saturated when they get out of college and the degree has little value now the kid is in really big trouble feeding the large student debt instead of their dreams.
Being real a lot of college degrees these days are worthless and the institutions make money selling a dream to the parents sending the kids there. It's a big money grab. Now there are some degrees like doctor, attorneys, etc. the returns over time can make it very lucrative and makes sense. It's just some degrees like general business are worth toilet paper these days. Everybody has it and it's not worth much.
Maybe once you graduate high school you could intern at an investment firm while going to college. Some often offer a full time position to interns once they graduate as they already know their systems and processes.
I am not against school. I made A's constantly and very good at tests and enjoyed it. My buddies and I were just in college looking around and saying we all own businesses we are not going to work for anybody else and what are we doing here? We did about 2 years or so. The main part of the reasoning brain in humans does not fully develop until about 21 to 22 years of age. It's great to focus on your future but at the same time enjoy being a teenager because it only comes around one time.
- Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes7y
@Brett Abamonte connect with someone actually doing deals, Learn from them. Find deals, they will pay you. Actually DO IT. do not just sit in classrooms and read books. I never read a book, or sat in on a guru class. I simply sat side by side with those that actually do deals vs spending years building their " power team " Keep it simple and do it !!
- Rental Property Investor · Pittsford, NY · Member since 2016 · 32 posts · 8 votes7y@Matt Nusbaum Hey Matt, thanks for the response. I know it seems strange for me to start thinking this far ahead in my life. But to be honest I think what got me headed in this direction is constantly seeing middle class people working paycheck to paycheck. Always wishing for more out of life and I thought to myself I should be excelling financially because there isn’t any reason to not be. I’m just looking forward to learning and mastering MFH and apartment buildings to help fuel the life I want to live.
- Rental Property Investor · Pittsford, NY · Member since 2016 · 32 posts · 8 votes7y@Joel Owens Thanks for the input Joel, you know it’s funny I think exactly the same way. School has its place and can be extremely beneficial but most of the time it can actually hinder someone’s future. Now I am thinking about going to college for Accounting/Taxation and ultimately my MBA. And along side that will be investing and running side businesses. Trust me I am enjoying myself as a teenager too haha. Video games, late nights, junk food, sleeping in, etc. But when it comes to preparing myself for the live I want to have then I am ready to learn and work hard. I feel like I should do both!
- Rental Property Investor · Pittsford, NY · Member since 2016 · 32 posts · 8 votes7y@Bob Prisco Will definetly do that Bob, experience is the one of the most import factors in success!
If studying is an option go for it but if college does not appear to be in your future, I would suggest you get a job in a company involved in real estate. It can be renting/selling houses or remodeling. That will give you a lot of insight.
- Rental Property Investor · Orlando, FL · Member since 2018 · 20 posts · 4 votes7y@Brett Abamonte Hey Brett I think that a lot of the advice you've gotten so far has been solid so I‘m going to take you In a dIfferent direction. I’m a 22 year old so not as young but I'm building a team of young guys who want to do just a little bit more than go to college and wait until the time is right to start making money. What I suggest is you focus every second of your free time and waking hours on income producing activities. Yes, that means no more video games, but you may can play it or party as a reward system. If you want to be financial free your new hobby has to be making money, developing skillsets, financial planning, networking, studyIng success and successful people, reading books, and buying assets to fuel your dreams. Otherwise you'll end up 26 before you start or worse. Now I want you to look up Ecommerce, more specifically Shopify, Amazon FBA, Affiliate Marketing, Social Media Marketing and learn anyone of these skills to increase your income and possibly get a sales job doing hourly and commission or even better a straight commissions job to learn how to get paid for your results not your time. Learning those skills are going to be a lot better than and faster than learning for example law which will take forever, and these skills will not break your back or the bank but they wIll challenge your mind. They can also be something you can start today and use the capital to build your credit and make smart moves. I would love to connect and help you grow and there is another 17 year old I want you to meet. He has the same ambitions and drive as you.
- Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes7y
@Brett Abamonte you don't need to do a secured loan. I would just get a regular credit card from your credit union or bank. Make sure you always pay it off before you pay any interest, and never spend money on the credit card you don't have in the bank right that second. You will build plenty of credit like that. The trick with credit is you want to always show the credit bureaus that you are using it, but you don't actually want to use leverage to buy junk (vacations, cars, nice clothes). Instead, save your leverage (credit) for buying assets like cash flowing rentals.
Another thing you could do if your parents are on board (and if they are financially savvy) is to have them put you on a few of the bills at home. If your name is on the cable bill once your are 18, and it is getting paid every month, then you will be in good shape.
One other piece of advice is don't go into massive debt for a college degree. College degrees can be useful, but shop for education like it is a commodity (It is). If a NY state school is 1/3 the price of a big name, but has a solid reputation, don't be afraid to go there. College doesn't have to cost 40k per year...
- Rental Property Investor · Pittsford, NY · Member since 2016 · 32 posts · 8 votes7y@Joel Francis Thanks Joel I appreciate the advice. It’s funny because currently I am doing two side businesses if you will currently for income. I create Udemy courses, and run a resell business on eBay and Poshmark. Social Media Marketing is something I really want to look into because there is lots of potential in that business. I would love to meet that person you mentioned and get to connect with you a little bit more.
- Rental Property Investor · Pittsford, NY · Member since 2016 · 32 posts · 8 votes7y@John Warren Oh alright thank you for clearing that up. I was under the impression that a secured loan is beneficial for accelerating the process of building good credit.
- Real Estate Agent · San Luis Obispo, CA · Member since 2018 · 79 posts · 39 votes7y@Brett Abamonte I am currently 16 years old and I focus on multi family properties and what I can say is you should find a mentor. I know people say it all the time and it gets repetitive, but it really does help to intern because it will get your name out in the business and it will teach you the ropes. I am currently looking to intern at a real estate brokerage because I want to be a broker in the future but the same applies for investing. The way to intern is find meetups in your area or email investors privately. Lots of Investors would love to have someone that will do a majority of there mundane work to free up there valued time. Good luck!
- 7yRonald RohdePro MemberAttorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
4-plex will qualify for FHA and other generous lending programs. @Brett Abamonte
- Real Estate Agent · Manheim, PA · Member since 2018 · 37 posts · 20 votes7y@Brett Abamonte Hey Brett! I'm 19 and started learning about investment real estate roughly 6 months ago on bigger pockets. I may a few connections and that helped me make my next move of interning at a large (3000+ unit) property management group and getting my real estate license over this past summer. I worked under the head of the realty division and learned the ins and outs of managing, analyzing, and selling properties. Now I am helping the head realtor in selling investment properties and saving my commissions to put toward my first rental property. My plan is to buy a property within the next year close to my college though a private loan with roughly 10k In reserves that I have saved up. To accelerate your savings, work hard but more importantly be creative. Last summer i started a landscaping business while working part time at two other jobs and interning at the property management company. The landscaping business allowed me to make high dollar per hour rates that i wouldnt have been able to make if i had worked more at the ice cream shop i worked as a busboy. I would say the most important thing to do is to meet people that you can learn from and get as much "hands on" experiences looking at properties and analysing deals. Feel free to message me if you have any questions.
- 7yStephanie P.Pro MemberWashington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
Originally posted by @Kerry Baird:
@Stephanie P., I'm so glad to see your response. The OP would be wise to consider your advice.
-My son is 15 and struggling to find his strengths, yet he is very young to have much experience outside the home. We were thinking the ASVAB, which sorted us for our jobs in the Air Force, would be useful. While the military is familiar to my son, he has seen the downsides with our high deployment rates.
-Your comments about community college are also spot on, in my opinion. Student loans are onerous!
-Similar to your son working in a bank, one of my first jobs was pulling credit as an assistant to a VP of lending. I have never forgotten the lessons from that experience, as she was always saying No, due to low credit scores. I learned what was necessary to get to Yes.
-I looked up the link for the folks behind the Strengths Finder. We are going to take this advice in our family. Thanks!!
Glad you found the comment useful. The Strengths Finder was a real eye opener for me as a parent. I have four children; all of them are very different. My oldest does not do math; AT ALL. She is terrible at it. We focused her energies and studies on what she loved and she was able to bypass math altogether in college and focus on English and History. Now she's got her Master's in Library Science and loves working in a public library system. The next one was got his degree in Economics and works deciphering graphs and trends in the insurance agency, but he had a love for cars, so he took auto mechanics and is regularly tinkering with his vehicles. He's amazing. My next one had a love for science and animals, so her logical path was veterinarian, but putting down kittens for a summer internship crushed that dream. She got her Master's in Occupational Therapy just last year after a couple of different internships that gave her some direction.
It's so important to love what you do. @Kerry Baird, check out the Academic Common Market. It's a fantastic way to get in state tuition at a participating out of state school. Both of my daughters did it and saved tens of thousands in tuition bills.
Best of luck
Stephanie
- Member since 2018 · 200 posts · 123 votes7y
You've received a lot of quality advice. Let me throw in my two cents worth. First of all congrats on being so focused and motivated at your age. My advice is:
1. Become a life long learner.
2. Give yourself options, you never know where life will take you. (My plan was to be a teacher and principal. When I read Rich Dad Poor Dad I learned there was a better way. I now own mobile home parks and small apartment complexes.) I resigned my Principal's position 5 years ago and I now manage my properties and spend a lot more time with my family.
3. Create as many different streams of income as possible.
4. There is always much to learn and good people willing to help you if you seek them out. I wish you well. Feel free to message me if you think I could be of service.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.