I am a 17 year old with $1000 in my checking account and $12000 in my savings. I make $600 bi-weekly and I can save every bit of it. I have read a few of Robert Kiyosaki’s books and I’ve been looking into highly rewarding career options including real estate. I read an hour a day every single day in the morning. Real estate wise, I know I want to rent/flip properties in the near future. I live in a suburban area and the market is extremely overvalued at the moment. I can live with my parents for atleast a couple of years.
How do I get started? What should I read? What are the most common beginner mistakes? Should I invest in a different area? Pros and cons of a real estate license? What mentors do you listen to?
Thank you to all who help!
Congrats on getting started so early! I would highly suggest looking into house-hacking, BP has plenty of podcasts and Craig Curelop wrote a book on it that I'd suggest reading. Can get into a deal with very little money down and get started earlier that way. If you don't qualify for the mortgage on your own, you might be able to get your parents to co-sign?
Thank you so much Landon! I’ll check out that book, thank you for the recommendation.
You are already off to a great start! Managing your personal finances is a step far too many skip. Below is my generic advice to anyone starting out:
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.
Thank you so much Nathan!!
Everything Nathan said! Starting now, you'll be in an amazing position in 2-3 years, just make a hobby of collecting real estate.
@Pierre Gauthier Don't be too early to open an LLC-you dont need it until you have a bunch of assets. Sounds like you're on track, good luck
Thank you so much Benjamin! Could I message you?
Thank you Peter! Could I message you?
@Pierre Gauthier of course
Thanks! I sent a request
@Pierre Gauthier sure!
@Pierre Gauthier Start telling the world about your passion for real estate and create your brand. Post on social media, tell your family and friends and anyone you meet for that matter, and the universe will pay dividends beyond your wildest dreams.
Thanks a lot Benjamin! I sent you a request to chat
Thank you Andrew! I’ve been trying to start doing that and slowly started networking on here. How would you approach building your brand as a 17 year old?
@Pierre Gauthier Learn, learn and learn some more. Tell everyone about your passion. Don't be scared to fail. Read as many books and listen to as many podcasts you can get your hands on. Share knowledge freely and openly on social media and to anyone you meet. Once you do this consistently and long enough, your brand will start to take shape. Before you know it, it'll have a life of its own and people you barely know will be coming to you for real estate advice.