I am currently a rising senior in college and live in Boston. I have had two internships, with my last one being at liberty mutual. I have found that although the corporate world is safe, and I could most likely get a good job coming out of college, I am far more interested in real estate. I have read several books on different parts of real estate that really have got me motivated. I have about $50,000 saved up from entrepreneurial ventures. How do I best get started in investing in real estate. I am all up for taking classes, joining groups, etc. I guess I am just wondering if it is at all possible for someone in their early 20s to get a real good start in real estate investing and what is the best way to go about it.
Aa far as starting in your 20's is concerned, my daughter just turned 15...and she'll be retired by the time she graduates college...through real estate investing.
With $50k in cash you don't realize it now, but you just bought yourself retirement...and no I don't want your money. I can tell you that you do need to commit yourself to never stop learning though. Every day there is a new way, or a better way, to do this.
As far as using your $50k, once you learn how to analyze properties correctly, and fill out your team (contractors for rehab, insurance for flipping and holding, lenders for refinancing, partners with good credit to refinance with, etc...) you are on your way.
Here is the way I did it (still doing it). You first need a market that will allow you to have high cash flow. Here where I am we can buy/rehab a house all cash for under $50k and cash flow it (with a refinance loan, taxes, insurance, and a property manager) at least at $400/month...or we move onto the next deal. We can do this all day...and pay the Asking Price.
Once you rehab the house, put the tenant in it and refinance (I have sources that have no seasoning period, so I can do this within 30 days or so). This way, the Cash I put into the house, I get right back out (sometimes more), and I use it again on the next one. Then, just keep repeating these steps until you get old, or just tired of making money.
I'll say it (cause if I don't...someone else will) "you've come to the right spot!"
The problem is there are so many answers to your question, there really isn't an answer to your question. There are so many options the best thing to do is decide what exactly you want. To help narrow that down you can start with the bigger pockets ultimate beginners guide and the podcast.
The example that Brandon and Josh use, is a box of assorted chocolates. We all have our favorites and the ones we don't like.
The good news is, it doesn't really matter how old you are, you can be just as successful as a 20 year old as someone 10 years older. It just takes hard work and patience. Good luck!
Hello @Matthew Conroy
Welcome to BP! There are many MA investors here that can help you with analyzing areas and specific deals. Also look into attending the free Black Diamond networking events hosted by @Ann Bellamy I recommend that you get to know @Justin Silverio and @Shaun Reilly as they are very active here on BP and in the MA local REIA circuit. I would be happy to answer any questions or help in any way I can. I am a real estate agent, contractor, and investor. Good Luck!
Hi Matthew, welcome to BP.
This is a great place to learn. Make sure to listen to all the BP podcasts, read the articles on the main blog and be active in these forums to learn a ton very quickly about any topic in real estate you want to know more about.
This is also a great place to meet people that can be assets to your business. Lots of great connections all over but we also have a very strong and active contingent here in MA on here so make sure to find them (Set up some keyword alerts to find out about local topics) and get connected.
Besides doing that on here make sure to get out to some of the many local investor events we have. As Brian mentioned the Black Diamond event in Waltham (2nd location in Worcester) is a great one to check out. The Boston Area REIA is in Medford as well and there are many other options both north and south of the city depending on where you think you may want to focus more.
It is impressive you have that much saved up at your age and before getting that corporate job. You certainly want to make sure you learn a lot and know your niche before putting any of that money into a deal. For better or worse we are in a very expensive market so unless you want to leave or try investing out of state right off the bat $50K doesn't get you all that far. Don't get me wrong you can use that as a down payment on a rental or your skin in the game on a rehab flip but you just aren't going to be able to buy a house and rehab it without any financing coming into play.
@Matthew Conroy Welcome to Biggah Pahketss!! I wish I had 50k when I was 20. Real estate is THE approach to utilizing that money. I'm glad that you came to bigger pockets before you went into real estate! =]
Go ahead and read the Ultimate Beginner's Guide to REI to get the fundamentals.
Start listening to those podcasts; I've found that downloading the podcast app (if you have an iPhone) works the best for interface instead of itunes. From the podcasts you'll start to learn what the possibilities are in real estate, and you might end up (like most people) with a constantly evolving plan for your real estate investing future.
I'm relatively new to BP and haven't gone to any local meetings yet. As advised above you should attend these meetings to get invaluable experience and connections, I'll see you there!
@Matthew Conroy Welcome, good start!
A beginner asked me yesterday, what's the best way to raise money without taking chances and get into Real Estate Investing even in Boston, Massachusetts.
I suggested one way was to get a 9-5 in her field and the money earmarked for retirement/401k (or put away 10-20%) could be used for Real Estate Investing, specifically Buy-Fixup-Sell/Rent. This would maintain some security for her.
Depends on your taste for risk? Look at all the folks in Vegas;-)
You're welcome to join us at an upcoming meeting!
Thanks @Brian Ortins .
Welcome to BP @Matthew Conroy . I'd recommend that you educate yourself on the different ways you can invest in real estate and which makes the most sense for you. Once you do that, learn more about the specifics of that type of investing and network with people who are active in that investment segment. There are a lot of resources at your fingertips on BP and in and around Boston so take advantage. I'm happy to help however I can.
@Matthew Conroy - One thing I would recommend is feel free to ask questions and post it on forum. Many a times we are hesitant to post a question, but surprisingly you will find there are lot of ways to answer the question and its always to get to have multiple perspectives.
Also would recommend reading How do I find a Mentor?
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