I have yet bought my first property. (I'm 16) But I was talking to a realtor earlier. And we chatted on how buying a property works. Duel agents and other things that happen in buying. However, she did warn me about some flaws. Sometimes you might buy into a property that doesnt cash flow or just break even. What should be considered looking at a property? And ways to analyze a property using redfin or Zillow. Also I got my w2 form. (I worked all summer, round 4 grand)(invested 3k in stocks). How does this work, and doesnt it help to get pre approved?
Good on you for starting out so young, @Tyler Thavong . There are plenty of resources here on BP to learn about analyzing a property. Zillow and Redfin usually don't contain enough info. Crucially, an accurate rent or ARV. You can't really trust "Zestimates." There's a free e-book from BP that you should read. Also, try to attend a few of the webinars.
As far as getting pre-approved, that's probably not possible. I don't think you could enter into a legal contract (e.g. a purchase agreement or mortgage) until you're 18. Even then with no real credit, it's probably not going to happen. You could probably do something in coordination with your parents. They'd certainly have to be on the mortgage.
@Tyler Thavong congratulations on educating yourself and starting so you in the wonderful world of real estate investing. There are many roads that lead to success in real estate and you will need to figure our which one is right for you. BP has tons of materials to help you get started and to educate yourself. Learn how to run your numbers because the numbers do not lie unless they are done incorrectly; that takes practice. When I started my goal was to assess 100 properties a week so it would become second nature to me. I wanted to flip, so I would find properties that I think would work for my goals and I would run my numbers, and then watch the investor to see what they did, how much it sold etc. Eventually, I got good enough to be pretty accurate. Being younger, I would suggest you look into house-hacking when you are ready to launch. You buy a duplex and live in one half, rent out the other half and let your tenants pay all your expenses and end up with cash flow at the end of the month. In this situation, you would pay yourself rent by placing it into saving so you can save to buy your next property. The benefits of this are since you will be an owner occupant you will need less money down for a mortgage. I would also suggest you find a Realtor who is an actual investor...so many say they are "investor friendly", but until you lived it you really do not know it. BP is another good source to find a Realtor in your area. Good luck! You are definitely on the right track!
@Tyler Thavong I was going to suggest that you attend a BP webinar. That would answer a lot of your questions as well as give you an opportunity to ask a view.
The banner on the right of my screen tells me the next one coming up on Wednesday evening sounds like it's right up your alley: "How to Buy Your First, Second, or Third Rental Property!"
Good job! Proud of you! You’re an asset to society. Keep up the good work!!