I am a 16 year old sophomore in high school. I want to get my real estate license at 18 and start working the business then. Over time I want accumulate a portfolio of 1,000s+ cash flowing multi family units. No matter what stage in the game you are at now, I am curious how you got to where you are today? Thanks for your input as it will help me make decisions on going about acquiring the assets.
Investor · Phoenix, AZ · Member since 2017 · 583 posts · 919 votes
7y
I feel like I took the long road, others likely feel differently.
I became a CPA and worked in the corporate world until I couldn't take it anymore. For multifamily, I started investing as an LP in syndications, and moved over to the sponsor side about a year ago. I set a goal of buying 1,000 units by the end of 2020. 9 months ago I bought a 98 unit. 3 months ago I bought a 117 unit. And I just went under contract tonight on a 164 unit.
Becoming a CPA was the long road I was talking about. However, once I decided to move to real estate, having that background and foundation really helped cut down on my learning curve, especially for multifamily.
Investor · Phoenix, AZ · Member since 2017 · 583 posts · 919 votes
7y
I feel like I took the long road, others likely feel differently.
I became a CPA and worked in the corporate world until I couldn't take it anymore. For multifamily, I started investing as an LP in syndications, and moved over to the sponsor side about a year ago. I set a goal of buying 1,000 units by the end of 2020. 9 months ago I bought a 98 unit. 3 months ago I bought a 117 unit. And I just went under contract tonight on a 164 unit.
Becoming a CPA was the long road I was talking about. However, once I decided to move to real estate, having that background and foundation really helped cut down on my learning curve, especially for multifamily.
@Sam Grooms thanks for your response. It was rather unique for you to start as a CPA and then make the transition,but hey it seems like you’ve made it work. It sounds like your crushing it now. Do you have any tips for being on the sponsor side of syndications and raising the capital needed to make the bigger deals work ?
@Sam Grooms thanks for your response. It was rather unique for you to start as a CPA and then make the transition,but hey it seems like you’ve made it work. It sounds like your crushing it now. Do you have any tips for being on the sponsor side of syndications and raising the capital needed to make the bigger deals work ?
Education and networking. Lots of it. There are 4-5 good books on multifamily. I would start there to get to know the industry lingo. Then, start going to conferences, workshops, seminars. These don't have to be expensive. Most large REIAs (join your local REIA) will have a multifamily workshop once or twice a year. Our's is usually $30 or so. I was actually first introduced to multifamily at AZREIA here in Phoenix, by Anthony Chara. He's an excellent teacher, and his classes are very reasonably priced ($30 for that two day workshop. A couple hundred for the ones in Denver he does throughout the year). There are also local meetup groups for multifamily that can teach you a lot. You just have to find the right ones.
@Sam Grooms wow thanks that makes a lot of sense and I appreciate your response. I am definitely going to look into that some more and find out how I can be apart of my local REIA. Also I'm going to look into local seminars in my area to go to.
@Scott Mac thanks for the suggestion. I had read rich dad poor dad and it was definitely life changing. But I will definitely read it again as I finished a month ago.
@Eamonn McElroy thanks so much, that makes a lot of sense. This reminds me of the 10x rule and it definitely works. I appreciate your response and I plan on working harder than everyone around me to get what I want.
Sup @Jordan Lucas im a 16 yr old just like you i know i haven't gotten anywhere but i still felt like, sharing my ideas won't hurt. Since im going to start on this business with zero income, i will study and graduate with some engeneering degree just so that i can get that fixed income monthly, I'll start to save 40 percent of my bucks as consistently as i can. After this proceed to take loans (good debt u know) and buy two 3 or 2 bedroom properties, that i can rent, i expect these tenants to pay off the mortage for the properties and my savings are solely going to be used to pay any loan faster and mainly to not stay behind on any loan when the properties happen to be on vacancy.
This is just my rough thought and i still got much to learn, im accually looking for people to criticize my plan and give their opinions so i can improve... Im in it for the passive income and I'm basically trying to figure out the safest, quickest way to start that exponential growth, according to my hurdles and specific situation.
@Leandro Abreu Castro whatsup my man. There are very few people like us at our age and I appreciate you commenting on my post. Your plan sounds great. I would say though, if engineering isn’t your thing and your just doing it to make money, choose something else. I’m not sure if that is you or not but I know that was me and I finally decided that that wouldn’t be me. Also I would suggest that you start watching Graham Stephan on YouTube. He talks a lot about house hacking like you are mentioning now and I know his videos can help you out and sculpt your ideas better. My plan is to get my real estate license at 18. Start small and build up. Save all the money I can and invest the rest in multi family real estate. I’m definitely in for the passive game as well. Keep it up my friend and don’t ever lose your dreams!
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
7y
@Jordan Lucas
I love your attitude. You will go far in life thinking like this and doing what you love. I’m a pilot because I love flying and would do it for free. I started investing in real estate four years ago and have acquired 6 SFRs..and making an offer on one more this week hopefully. I would invest in real estate for free too! It’s fun. And very rewarding watching the passive income flow in every month. I geek out on every bigger pocket podcast that comes out. And read the guests’ favorite real estate or business books they suggest. I’m reading the four hour work week and richest man in Babylon now since many have recommended them on the podcast. Loving both of them too. Work smart and enjoy the ride!
@John Morgan thanks so much for the words of encouragement, wisdom,and sharing a part of your story. I will continue to follow my passions and make it go somewhere in life! I haven’t started reading them yet but I do have the 4 hour work week and richest man of Babylon in audio book form. I will start them soon after I finish a few more books! Do you recommend any other books ?
@John Morgan thanks so much for the words of encouragement, wisdom,and sharing a part of your story. I will continue to follow my passions and make it go somewhere in life! I haven’t started reading them yet but I do have the 4 hour work week and richest man of Babylon in audio book form. I will start them soon after I finish a few more books! Do you recommend any other books ?
I loved reading the millionaire next door. It talks about the mindset and delayed gratification of anyone at any income to be extremely wealthy. And these people live simple non flashy lives. They’re willing to save a little here and there instead of spending all their $. Just like in the richest man in Babylon book. And another one I liked was a bigger pockets book which talks about how to get started in real estate with no money. It talked about ways to save up that first 25k. Once you have about 25k you’re ready to invest in real estate and multiply. Can’t remember the name of the book..I gave to some kid thinking about getting into real estate after I read it a couple months ago. Keep asking and learn from others. That’s the key. And don’t listen to all the negative people out there that don’t believe in you. Just go for it and have fun with it!
@John Morgan thanks so much for that extra knowledge! I just added that to my list and will definitely be reading it as it seems like a book I could benefit from. And once again thanks for your words of encouragement!
New to Real Estate · Waco, TX · Member since 2019 · 4 posts · 2 votes
7y
@Scott Mac Hello Scott, I’m a newbie to the real estate business, I want to sponge up as much education as possible. I just finished reading Rich Dad, Poor Dad was wondering if there are any other books you would suggest I read?
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y
Investing is always a long road. The time horizon for any impactful money won't happen until 10-12yrs into it. My formula.
1. Focus on increasing my personal income and create high-income skills for myself. Your goal is to get to multiple 6-figures. The more money you make the more ammo you have to play with.
2. Stack your cash and invest and reinvest into the property and into yourself with mentors and programs.
3. Focus on 1 niche and dominate it. Don't jump around trying a bunch of different things.
4. When your income is increasing and your portfolio growing don't change your lifestyle. You have not made it yet. I ate crap for 10yrs and this took discipline but I knew what the end results would be.
If you can do this and you get to years 10-12. This is what will happen. Your properties will have a snowball effect and your passive income will take care of your life. You will also realize when you get there that there is zero competition. Everyone already gave up. Everyone's playbook and the story will be different. This is what worked for me. It's not a crazy story where I BRRRR and BRRRR and BRRRR, it was just straight grinding for all these years.
@Frank Wong thanks man I appreciate this detailed response so much! I will definitely be using this strategy in building wealth and increasing my passive income from properties!
Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
7y
I follow this Scott Adam's quote:
After I set my overarching long term life goals, I focus on a few short and medium term goals that are specific, measurable, attainable, relevant, and timely. I then spend a lot of energy to set up my life with systems that enable me to accomplish my short and medium term goals. When do I wake up/go to bed, how many hours a week do I dedicate to my short/medium term tasks, developing other skill sets that I will need along the way, ect
When I reach a short term goal I reevaluate where I stand and if I have learned anything that has changed my desired destination. After that, its about finding the next medium term goal and keeping up with the systems.
Owning over 1,000 units is all well and good, but there are thousands of little goals one must accomplished before then.
Figuring out what you need to achieve next week, month, and year and creating an environment to accomplish them will separate you from every other person that has listened to a few podcasts and/or read Rich Dad Poor Dad and decides they want to be an apartment mogul.
Sup @Jordan Lucas im a 16 yr old just like you i know i haven't gotten anywhere but i still felt like, sharing my ideas won't hurt. Since im going to start on this business with zero income, i will study and graduate with some engeneering degree just so that i can get that fixed income monthly, I'll start to save 40 percent of my bucks as consistently as i can. After this proceed to take loans (good debt u know) and buy two 3 or 2 bedroom properties, that i can rent, i expect these tenants to pay off the mortage for the properties and my savings are solely going to be used to pay any loan faster and mainly to not stay behind on any loan when the properties happen to be on vacancy.
This is just my rough thought and i still got much to learn, im accually looking for people to criticize my plan and give their opinions so i can improve... Im in it for the passive income and I'm basically trying to figure out the safest, quickest way to start that exponential growth, according to my hurdles and specific situation.
@Bill F. Thanks so much for that detailed response. I think that is a great idea and one that I have admittedly been lacking in. I’ll have to reevaluate my day to day steps before I ever reach my long term goals! You made me realize that thanks!
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
My advice is go to college and get a business or marketing degree. If you want to truly grow and scale a business, you need to learn business, management, accounting and marketing fundamentals. Beyond the knowledge you gain, comes credentials, friends and connections.
As far as things you can do right now, I would get a job in a real estate related profession. Call local realtors and explain you want to get into real estate when you are old enough. Tell them you want to start working in the profession today. Offer to be their gopher or odd jobs guy. Realtors spend time just running around picking things up and properties always need odd jobs done to make them look better. They can pay you a low wage to get simple jobs off their list and you get to make connections, plus shadow the industry. Once you get going, ask for more responsibility. If you can show you are capable, you will keep getting more responsibility until one day you are running the darn place.
@Joe Splitrock thanks for the advice I really appreciate! Your reasoning for college makes a lot of sense. Also I love the idea you had about getting in the business now. My grandma is a real estate agent and I have worked with her before but I’m going to see if I can expand my responsibilities with her, of course starting off small, thanks!