I am 17 years old and I plan to get my Real Estate License once I turn 18 and graduate. I’m trying to find ways to set myself up for success when I start investing in real estate in the next few years. Can anybody give me any tips for starting out young and anything you wish you had known when you first started investing.
Congrats to you for your ambition! If you are looking to connect with someone for some guidance or advice, feel free to reach out. I also 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/.
Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
5y
Join some meet ups and educate yourself with a lot of mindset books because this is a long term game. The earlier you grasp the importance of delayed gratification, the more successful you will be. Start working on 1 skill that that is unique to real estate investing. If that means learning painting, fixing appliances or any small job for which you would hire a contractor. Try to put together the ideal rehab property with the flooring of your choice, paint, cabinets and everything. All these things don't require any money. Just a laptop and consistency.
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.
Buckle in, keep your arms and legs in at all times, and enjoy the ride!
Banker · Saint Clair Shores, MI · Member since 2011 · 131 posts · 53 votes
5y
Keria,
This is a big future question. Your first real estate purchase for investment should be at 2 plex. Your tenant pays your mortgage and most of the expenses and you bank most of your pay check. As far a career, think a skilled trades degree, a pay check is attached when you graduate with a 2 year community collage degree. At your age this may be able to be free to you.
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