How to get into Real Estate at age 16, and how to make money.

Question

I am 16, and I would love to get into real estate. I am going to high school, and don't have a job, so how show I go about getting into real estate? Thanks in Advance.

Diane Menke · Answer

I'd suggest taking some accounting classes. Learning to understand financial statements is a must and not too hard to do.

I second the idea that you work for someone already investing real estate.

Build up your BS meter. There is a lot of BS in this business and you need to be able to recognize it.

Good luck!

D

Dan Sheeks · Answer

Hey @Carson Smith

Congrats to you for your ambition! I work with a bunch of young aspiring real estate investors just like you (in a free online group), and I am willing to help you out with some advice or even chat on the phone if you wish. But I first recommend you read this article I wrote for Bigger Pockets titled How to Invest in Real Estate Before Turning 21. Once you've read it, let me know your thoughts and if you have any questions. I am a high school teacher in Colorado and I am always looking to help young people get started in real estate investing or help in any way I can. Let me know if you want to chat sometime. https://www.biggerpockets.com/

Nathan Gesner · Answer

Well, you can't sign legal contracts at 16 so it's still two years away. You don't have a job or established credit, so no bank will loan you money. What you should do is focus on education. I'll provide some tips below. The second thing you can do is find an investment group in your area and start networking. Most people love sharing their knowledge with others, particularly a young guy just getting started. When you find someone, offer to help them on their business in exchange for information. For example, you may find a contractor that works on flips. Offer to pick up materials for him or sweep the floors every night or take pictures of progress and send him updates. Maybe he's not skilled with computers so you can help build a website or do his social media marketing. Maybe you're good at math and Excel and can help him research investments. Find a way to make yourself useful in exchange for information.

I also 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.