I am 16. I want to invest in Real Estate. Where do I start?

14 Replies

I am 16 I have $1000 I made this summer. Currently I have all of this money in a stock trading account. I have been trading for a few months. It is not for me. I want to do real estate. I want to do it now. Where do I start with the money I have? What investments would be good for me to achieve my overall goal of a Ferrari?

Welcome to BP @Jackson Maitner  

Real estate is not a get rich quick game. It is a get rich slowly and consistently game. The best way to lose that $1000 is to be in a hurry.

Take time to learn the business, learn how to evaluate deals and learn your market. You can do all of that for free. and most of it right here on BP

Good stuff!! First off you are light years ahead of your peers and by doing so, you have just separated yourself from the masses. I invest in notes secured by real estate way better returns than the stock market. Connect with me, I will share with you what I do.

@Jackson Maitner ,

I agree - well done that you're looking to do something other than spend your money on something.

You've got time to study - you need to be at least 18 years of age almost everywhere to be legal to sign a binding contract. Take advantage of that time to learn.

Trading paper is a logical next step when you're already familiar with other forms of trading. Learn from Roland and other notes mentors.

Then, when you're of age and you're ready, start exploring buying properties for income and ROI.

The first step is to ask permission from your mom. Since you're a minor, you cannot sign a deed that would be valid. Sux, but so is life. 

Don't let it stop you from getting an education and saving up some more money. You'll be ready to rock when you turn 18 and will be able to legally transact without parental consent.

Originally posted by @Shawn Jacobs:

Hey @Jackson Maitner, 

That's awesome, congrats! I'm in Grand Rapids, I'd love to get together chat. Shoot me a PM, I'd love to help you get started!

Shawn 

 What can I do now besides study?

Unfortunately, $1k isn't going to get you very far...  

I would try to go to REIA (Real Estate Investors Association) meetings, look at www.meetup.com for real estate investor groups, and see if you couldn't intern/shadow a GOOD (successful/smart/etc...) investor during summers or weekends.  Ideally, you could work for free for a little, and then see if you can't turn that into some money, or even a little equity in a deal.  If you even have 2% equity in a deal that's $100k (assuming no debt), there's $2k for you.  

Another idea is to get friends together an pool your money.

You're in a good place and mindset to get going early!

Best of luck.

-Joel

Originally posted by @Roland Thomas :

Good stuff!! First off you are light years ahead of your peers and by doing so, you have just separated yourself from the masses. I invest in notes secured by real estate way better returns than the stock market. Connect with me, I will share with you what I do.

 What are notes secured by real estate?

Originally posted by @Joel Gabelman :

Unfortunately, $1k isn't going to get you very far...  

I would try to go to REIA (Real Estate Investors Association) meetings, look at www.meetup.com for real estate investor groups, and see if you couldn't intern/shadow a GOOD (successful/smart/etc...) investor during summers or weekends.  Ideally, you could work for free for a little, and then see if you can't turn that into some money, or even a little equity in a deal.  If you even have 2% equity in a deal that's $100k (assuming no debt), there's $2k for you.  

Another idea is to get friends together an pool your money.

You're in a good place and mindset to get going early!

Best of luck.

-Joel

 Thank you! Very helpful

Hi @Jackson Maitner - Great to have you!

First, you already seem way ahead of most people at 16 in terms of planning.  Nice work.

Second, keep your enthusiasm, and plan for the long game.  You have a huge advantage in terms of time, and starting early.  You have a (possible) disadvantage with people not taking you seriously due to your age.  I am many years older than you, and still see disbelief when I tell people in their 60s that I can purchase their home with cash.  You can counter this by being serious, and getting some time in the industry.

If I were you, I would try to find a 'nights and weekends' job in a real estate related field.  Property manager, realtor's office, appraiser, inspector, anything really.  This will allow you to earn more money and learn a ton about the industry.

After that, I would start going to networking meetings, and offer your skills to help people out.  Offer to cut lawns and paint for a house flipper.  Offer to go take pictures of a property for a landlord.  Whatever it takes to get your foot in the door, and to start making connections.

With connections, you can turn $1000 into a lot more than that.  

Also, protect that money!  It's amazing how quickly you can spend money that you spent months earning.  If you're serious about investing, ONLY use it for investing.  Marketing, research, books, gas to look at houses, etcetera.  Otherwise, it'll be gone before you know it.

Good luck, and keep at it!

"Notes" are promissory notes aka "mortgage note" on a home, and there is a side of real estate investing that buy and sell mortgage notes for good sustainable passive income as well as lump some cash.

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