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.
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.
Welcome Jordan. You seem like a good dude with a good head on your shoulders. Keep up this attitude and ask questions here on BP and you'll go far!
For me Rich Dad Poor Dad got my mind right. I would highly recommend it! Ironically, a few months after reading it, I lost an Executive position in 2018 with a company I just relocated for (and worked at for 7+ years with excellent performance). While unemployed, I basically took my lifesavings and doubled down on a BRRRR property (yeah scary!). Through hard work and a great support system, I'm now about to close on my 20th door in a little over a years' time.
In my situation, I learned that even when you work very hard for a good employer, and do everything your told...and more! At the end of the day, you work for them, and they control your destiny. When I lost my job I said to myself, "Never again. Nobody is ever going to contol my future except me. If I fail, I want it to be because of me."
Keep learning, keep building relationships, and keep investing in yourself! Best of luck!
I don't have kids. Ergo, all kinds of early life choices were possible for me. I learned a lot when I was young because my energy and financial resources weren't spent on children.
On the other hand, I have an acquaintance with three kids by two mothers. His own worthless father was never around. He likes to say by way of excuse, "My daddy didn't teach me to use a condom." He says this a lot when he looks at his child support payments and realizes he's never going to be able to save and get some money together for a down payment on anything other than a pop-up camper by the river.
Does it take three kids to figure out how to put a cap on it?
@CJ M. Thanks so much I really appreciate at! I have read rich dad poor dad and it really is life changing. The thing about employers is very true and why I want to take control of my life. And I appreciate your tips a lots!
I'm on the long route. I went to grad school and am actually a physical therapist by trade. I wouldn't recommend that profession with the W2 income compared to the amount of student loan debt, but I definitely would recommend something with a higher W2 income such as engineering. That solid W2 makes underwriting a breeze when you get to that point. Despite the student loan debt I've managed 38 units, and another 30+ units with a partnership in the last 2.5 years of investing. Eventual end-game is take 2 travel contracts a year to maintain my PT license while still growing my portfolio and enjoying watching my kids grow up. You can certainly go the straight to agent route, but that's a choice for you my man.
Until you have that high W2, read, read, read, and listen. This website and the podcasts created here are your friend, as are Real Estate Guys Radio, best ever real estate Show, and Rod Khleiff are all great podcasts as well. This stuff really is not that complicated for the people that take the time to educate. You're already asking the right questions, you'll be just fine.
@Jordan Lucas Yes! i watch Graham 's videos, I was dragged into Real Estate when i saw a Lease Option video in Kris Krohn' s channel then found graham's videos and right now im checking out Grant Cardone and what's he all about... By the way thanks for commenting, i am accually thinking on an engineering career just for the money. But that's still subject to change. I like your plan aswell... I would follow it if i were in the US or Uk, but im in the Dominican Republic (island in the carribbean next to Puerto Rico and Cuba) and here nobody cares about the amount of cash you are able to pull monthly, if it isn't a fixed income, getting house buying level laons will be hard... banks will only give me the kind of loans i want if they see i have a stable job (fixed income monthly) . Or atleast that is the popular belief here and what everyone around me has said . Either way i still have to research more about banks over here and hopefully i still have time before i graduate to choose and better plan out what I'll do. Im currently investigating about rental taxes in my country , i recently saw a video by Graham where he talked about Depreciation and basically legally avoiding taxes and i want to see if i can implement that here.
Lastly, to be honest if i could, i wouldn't even waste my time in college, when i could simply pull a loan, buy a property and get my tenants to pay for the mortage and repeat the cycle again and again.
I completely agree with getting a job in the field. That said, I have a business degree. Quite honestly, if I could go back in time, I don't know if I'd do it again. Of course everyone's situation and circumstances are different, and college certainly didn't hurt me, I always wonder how I would have done if I found a great mentor in my early 20's and learned the RE trade then...although, then I might have had to deal with the GFC of 2007, so I dunno.
@Luke Grosskreutz wow thanks so much for that detailed response, I really appreciated it! Congrats on the success too! Was it hard balancing the debt and trying to purchase re or did you get rid of the debt and then began investing?and thanks for the suggestions I’m going to check them out!
@Leandro Abreu Castro no problem man! I love meeting like minded people on here! Is there anyway you could do some type of work study in the US? And do you plan on staying in the DR or relocating? And that last part is very valid
I know i should be patriotic, love my country and all, but if i happen to get the chance of leaving the DR, im 100% doing it, im trying my best to see if i can get a good scholarship or something, but i also haven't read much about investing in another country without residency, so that's something else i gotta investigate. Either way, whether i leave the country before studying or long after starting Real Estate, all i am sure of, is that it is one of my goals to do so.
I feel like we are sort of lucky, people like us not only like minded but starting at this age. I feel we are a bit more conscious about real life and have the determination to succeed in it. We aren't just starting early and building up the mentality, but we are also in the right path. While we do this, don't you notice other people for example class mates, just goofing around and being naive some not even knowing what they will do in their life and others just so chill and eager to get a depressing 9 to 5 job for the rest of their lifes. Although im struggling to figure out how i will proceed, im definitely glad that i discovered Real Estate this early on and have the great opportunity to plan my steps carefully.
God, but for real i really can't believe some of my class mates are so naive about the future and have this mentality like if everything in the future will come to them, they honestly don't realise that when you are out there in the world, you are pretty much alone and will have to figure how to do what you gotta do 70% of the time not having someone to guide you.
I feel like I getting to where I am going in spite of myself. The number of mistakes and miscalculations that it took is nothing short of staggering...
Unlike @Sam Grooms, I did it the old fassioned way - school of hard knocks. I was a professionally trained violinist, but I was diagnozed with a condition which made it necessary to look a way of generating income and wealth that was more reliant on my brain than my ability to punch the clock. After a lot of research I came to real estate as the answer.
Unlike Sam, I was not classically trained in anything financial or business. I started with single family, moved over to small multifamily, and eventaully moved to large multifamily.
Mine is likely the more common path. I have two pieces of news for you - one is good, the other not so much. The bad news is that you are very unlikely to be able to do it the way Sam did. @Sam Grooms is my partner, and I can tell you that he is one of the smartest people I know, and more capable to boot. I think that for most people - if you try to be Sam, you will fail.
The good news, however, is that I am not that special. If I can figre it out, you can as well. Just be prepared for a longer process, and some scrapes along the way...
@Leandro Abreu Castro there is nothing wrong with wanting better, everybody does! And yeah I agree we are very lucky to have to drive to learning about re early and wanting to start early. And yeah, we are the very few, people nowadays think it’s “cool” to not care about anything.
I didn’t pay off the debt. I make significantly more investing in real estate than I would have if I had put that money towards paying more on student loans. I didn’t have an insane amount of loans like a lot of my classmates however. Get a high paying W2 job and real estate investing becomes significantly easier.
Congrats on making a decision to invest in RE and be independent at such young age! I wish more young folks were as eager as you're to become financially free and planned ahead!
I went the traditional way, school, 2 college educations (one in accounting and MBA in Finance), corporate career in various roles. Started investing after many years in corporate world (I wish I did it much earlier), but as they say, "Better late than never". After investing passively in syndications for a while, I realized its full potential and decided to switch to a more active role in the syndications world. I enjoy every second of it but it requires a lot of hard work and dedication.
In your case, I recommend you go to college and get a degree in commercial real estate, while continuing working in real estate field in any capacity. Once you have enough funds and qualify, buy a residential multi to house-hack. Continue learning how to buy commercial real estate through books and ton of networking. You can find local REI clubs via BP/Network/Events and Meetup site. Also you have to read the mindset books like "Miracle Morning". If you'd like more recommendations PM me for my library link.