Investing tips for a teenager ?

Question

Hey ppl, As you might have guessed I’m a teenager and even though I’ve read 30-40books about REI

I do want some real life investor to give me some real life advice.

Thanks 🙏

Evan Polaski · Answer

@Iva Kadagidze if you are planning on going BRRRR/development, but really anything real estate, take some summer construction jobs if you can.  Doing demo, helping with carpentry, plumber, etc.  While the goal of most investors is to not be a contractor, unless you enjoy it, having some experience to understand the right ways and wrong ways, how much work jobs take, and therefore how much they should cost, is invaluable.

Beyond that, real estate is a capital intensive industry, so save, save, save.  Take out a credit card to start establishing credit. And then, when you can, start networking.  Local meetups, REIA groups, coffee with brokers and lenders, professors in the local university (I think most business schools these days have real estate programs).

Finally, be active here, listen to podcasts, read books, etc.

Alex Olson · Answer

Kudos! Time to jump in. Find a local lender that can set you straight on your financial capabilities, then, work with a realtor who is willing to help out in your area. Make sure you have enough money for your down payment. Hope that helps.

Whitney Hutten · Answer

@Iva Kadagidze Think about also investing in your "soft" skills like communication and negotiation.  Both will serve you not only in real estate but in nearly any other facet of life and work.  I'd add How to Win Friends and Influence People, and Don't Split the Difference by Chris Voss to your reading list. As far as a real estate specific book on the subject, I like Finding and Funding Great Deals right here on BP.

Ivan Kadagidze · Answer

@Evan Polaski

Thanks Evan, I’m reading a lot reading 1-2 books a week my head kinda hurts at this point 😂 but problem is it’s very difficult to find RE Development books very rare specialy in residential developments, not CRE.

But I’m struggling at light due diligence part, it’s my first day trying to learn the ropes and it’s confusing if you have any tips I’d appreciate it.

Thanks.

Ivan Kadagidze · Answer

@Whitney Hutten

Whitney thanks for the helpful tip 👍🏻

Max T. · Answer

1. save money

2. learn a trade

3. learn your target market - how much does a finished house sixe x go for? how much does a rehab house size x go for?

Timothy Giffin · Answer

@Iva Kadagidze

I would also encourage you to read other stories of BRRRRs, good and bad, and make a solid plan for how much money you will need upfront for down payment, closing, repairs, loan payments, and then more because it’s....always....more. Then come up with a good strategy for leasing, or selling, and then a backup plan for that.

Timothy Giffin · Answer

@Iva Kadagidze

Growing your net worth and investing in your future is the best thing you could do. I don’t know your situation, but I’m assuming since your a teenager you probably don’t have a lot of money at the moment, correct me if I’m wrong, with that being said I would recommend the following:

Save up as much money as you can right now. Don’t put it in a savings account, but find a good money market account that gives good interest. With the FED lowering the interest rate it won’t be as nice as it use to be, but better than a savings account at a bank. Or you could also go for CDs. Just so your putting it away and it’s still growing alittle. During this time keep looking at your market so you can get a grasp of the area and what it’s doing.

The link below is one of many resources. You can google more, but you will need to do extensive research.

https://fred.stlouisfed.org/series/PHXRNSA

Ivan Kadagidze · Answer

@Timothy Giffin

To start with I’m planning BRRRR, after I’ve got experience and a portfolio, PM, Realtor, contractor, mortgage brokers, attorney connections. I want to do developments.

But to start with, BRRRR maybe after that syndications.

What do u think ?

Ivan Kadagidze · Answer

@Alex Olson

Yeah, getting experience and availability to privet capital is my priority rn.

Thanks 👍🏻

Investing tips for a teenager ?

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