Finding money lenders/investers as a 16 year old
Member since 2019 · 23 posts · 5 votes
Hey guys and gals,
I'm a 16 year old that is very interested in real estate and investing in general.
As I just mentioned, I'm a teenager and therefore I do not have the capital or entitlements that as "adults" have.
My question is therefore;
Is there any way to slowly get into real estate and start doing practical stuff?
I've considered REITs but as far as im aware, you need quite some capital that aswell?
I was thinking that I could find someone that I find potential properties for, they then invest in it give me a small share (I could do it for free aswell I just want to learn) and get updated on how the investment is doing. Another thing that would be cool would is if there would be any way of somehow borrowing money under the age of 18.
Thanks in advance for your responses!
Rickard
@Rickard Risberg
I’m not in your market but if a 16 year old brought me a deal that I bought I’d for sure fine a way to get you paid a fee for that. You could try something like that partnering with someone local finding deals for them. It will also show that you’re building a track record for lenders when you do turn 18.
I didn’t read the whole post, but maybe you can pull your parents in to sign on deals if you’re not partnering with someone?
@Rickard Risberg. Find an investor you can do work for and learn from them. Gain knowledge in all aspects evaluating and maintaining property - structural, electric, plumbing, etc. Bank as much money as possible. You won’t be able to get a loan unless you use a co-signer at a bank or borrow from family or friends. You might be able to identify properties for an investor to purchase and get a fee. But I’d start by learning to be a handyman. That knowledge will be valuable as you step up to the big leagues.
@Rickard Risberg
I’m not in your market but if a 16 year old brought me a deal that I bought I’d for sure fine a way to get you paid a fee for that. You could try something like that partnering with someone local finding deals for them. It will also show that you’re building a track record for lenders when you do turn 18.
I didn’t read the whole post, but maybe you can pull your parents in to sign on deals if you’re not partnering with someone?
@Jeff Ronningen Great advice! But I'm not sure how to find other investors... Most of the people here on BP are situated in the US, I'm however in Belgium.... I've already tried looking for networking events but I'm not quite sure what to do there. I'm going to keep looking, and ill work on my handyman skills (;.
@Derek Carroll That's a good idea, however I do not believe my parents will be willing to do that, they are too skeptical and think that I should just wait until I turn 18, which of course is a understandable opinion by all means but I'd like to gain experience.
Thanks for your response!
Hey @Rickard Risberg, it's great to see someone your age as interested in real estate as you are! Since you're only 16 with limited income and capital, traditional lending methods are out of the question to acquire property. My suggestion to you to get involved in Real Estate is to start attending Real Estate Investor meetups/networking events. There are likely to be a TON in your area (check meetup.com for one resource), and I'm sure the individuals who attend are just as friendly and willing to chat as the events I have attended. You'll get the chance to talk to different investors who all have different methodologies and are at different stages of building their portfolio, which will be awesome for you to develop some knowledge and start thinking about what you want your investments to look like. I wouldn't be surprised if a veteran in the game is impressed with you being so interested at your age takes you under their wing as a mentee, or even some sort of unpaid intern type gig.
As for investing your current $$, I'd say open a high yield savings account (Ally, Citi, or Marcus by Goldman Sachs) and start stuffing money away from your part time job or side hustle, and save towards a down payment on your first investment property. Also, consider not attending College if you cannot avoid student loans. I have had a lot of clients aged 18-22, and every single one of them had picked up a trade or joined the blue collar workforce after High School instead of pursuing a degree. College is becoming less of a necessity and more of an obstacle how you can graduate without completely screwing yourself over financially. Hell - even I dropped out a year before graduating to become a Mortgage Specialist. I had three years interning in the field and I was getting BLOWN up by offers from various Mortgage companies, so I finally decided to cut my losses at $40k of debt, enter the work force and stop racking up debt that I'm really not deriving direct, tangible value from. If your dream is to be a Doctor, Lawyer, or Engineer, yeah you should go to college, but otherwise, definitely reconsider. Let me know if you have any questions!
EDIT: Saw you're in Belgium, don't know how higher education is paid for over there, so disregard my rant on College if acquiring debt is not commonplace.
@Benjamin Piecenski Sounds like a plan!
I'll look for networking events and hopefully find someone. By the way, should I dress formally?
This summer I'll be working for three weeks earning up some money and I'll try to (I will) put them away on a high yield savings account as you said!
I completely agree with your views on college, it may be useful for some but not for others. Some people feel satisfied with having a 9-5 job and getting paid for their time however I do not believe that I would feel satisfied in those conditions.
I want to earn money myself and I don't want to get paid by someone else in exchange for my time.
Thanks alot for your response I really appreciate it!
Rickard
@Rickard Risberg
Kill two birds with one stone and get an internship working for a developer or an investor. Get some experience so when you turn 18 you can start working on your own REI business.
You do know how to pour a good cup of coffee, right?
While you’re doing that, find your friend’s parents who make the $$$ and tell them what you’re doing. They are going to be your potential investors.
I would focus on developing a skill that other real estate investors would find valuable. You will want to develop skills and knowledge that allows you to be: (1) a specialist in certain areas; and (2) a generalist in the other aspects of real estate investing.
If you go to college, choose your major carefully. In hindsight, one of the dumbest decisions I made in my life was giving up on a double major in computer science so I can "focus" on being a musician. Now I ended up going to what they call a "T14 Law School" and everything turned out fine. But having a major in computer science (or any kind of STEM field) would've opened up a lot of opportunities for me. Oh well. ¯\_(ツ)_/¯
On a somewhat related note, here's a link to good article by @Brandon Hall that you may want to check out. Most successful real-estate investors ran a business. For example:
So to recap, I would say the best thing you can do now is develop skills that will allow you to provide "value." Once you can do that, everything else will probably work out.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
@Chris K.
Hey Chris!
Thanks Amit for your advice, just finished reading the article and I must say that his view is quite different but interesting.
He does bring up some good points and it is definitely something that I will keep in mind when starting my business.
Thanks!