How can someone start in this business

Question

I am currently 16 years old, turning 17 this coming month. I don't know anything about this business and I want to find people who have made really good money on that. My plan is to become a Real estate developer or a real estate investor. I might not know a lot but I'm willing to learn about it.

If anyone can get me some great tips on how to start. As I get out of high school ill be joining my local union to learn about electrical, to build an income. How can I start or what are things I should know ?

Kim Gray · Answer

Alex at 16 with this mindset you are already ahead of most people twice your age. The fact that you found BiggerPockets before you finished high school tells me everything I need to know about how serious you are.

Here is the best advice I can give you for right now:

The electrician plan is brilliant. Do not underestimate it. A licensed electrician earns serious money, builds real skills, and gives you the financial foundation to start investing. Many of the most successful real estate investors I know came from trades backgrounds. They understand construction costs, they can evaluate properties with a trained eye, and they never get taken advantage of by contractors. That is a genuine competitive advantage.

While you are learning your trade — read everything you can about real estate investing. The Book on Rental Property Investing by Brandon Turner is your starting point. It is written for people exactly where you are. Free at most libraries.

Start building your credit now. Pay every bill on time. Keep balances low. Your credit score at 25 will determine what you can buy and at what rate. Build it intentionally starting today.

Save aggressively. Every dollar you save between now and your first property is a dollar of leverage working for you later.

You do not need to buy anything yet. You need to learn, earn, and save. The deals will be there when you are ready.

The fact that you showed up here at 16 means you are going to do great things Alex. Stay the course.

Kamil Lysik · Answer

You’re honestly starting at a great age. The biggest advantage you have right now isn’t money — it’s time. Most successful investors wish they started learning at 16 or 17.

Joining the electrical union is actually a smart move because you’ll build:

• stable income,
• real construction knowledge,
• understanding of how properties work,
• and connections in the trades.

My biggest advice:don’t rush into trying to “get rich” in real estate. Focus first on learning:

• deal analysis,
• how to evaluate properties,
• financing basics,
• construction costs,
• and how investors think about risk.

A lot of beginners think real estate is about finding deals. In reality, it’s about learning how to avoid bad deals.

I’d also recommend:

• reading BiggerPockets,
• learning basic property analysis,
• studying local markets,
• and networking with investors in your area.

If you stay consistent for the next 5–10 years, you’ll be far ahead of most people your age. The fact that you’re already thinking long term is a really good sign.

Minho Lee · Answer

Alex,

One of the best ways I recommend getting started in real estate investing at your age is to focus on learning as much as possible first. Read plenty of books (some listed below), listen to podcasts like BiggerPockets or Rookie Investors, attend local real estate meetups and just absorb everything you can!

It’s a long journey, but starting at your age gives you a heck of a head start.
Rich Dad Poor Dad — Robert KiyosakiHow to Invest in Real Estate — Joshua Dorkin & Brandon TurnerMulti-Family Millions — David LindahlThe Book on Rental Property Investing — Brandon Turner

Mohammed Rahman · Answer

I wouldn’t focus on trying to become an investor overnight. I’d focus more on learning the fundamentals first, things like different strategies (rental investing, flipping, BRRRR), how financing actually works, and how people analyze deals to decide if something is worth buying. That base will make everything else way easier to understand later.

From there, I’d start learning how real estate actually works on the ground in your area. Things like how properties are valued, what actually drives rent, what renovations realistically cost when contractors are involved, and how deals actually get put together in real life.

Your plan to go into electrical through a union is honestly a strong move. That kind of hands-on trade experience will give you a real advantage later because you’ll understand one of the most important and expensive parts of any rehab from the inside out.

While you’re doing that, I’d try to stay close to the industry in other ways too. Follow investors and pay attention to how they think through deals, not just the outcomes. If you can, spend time around people actually doing projects, even in small ways. A lot of learning in this business comes from being exposed to real transactions rather than just theory.

I’d also start getting comfortable with basic deal math early on so you understand how people are evaluating opportunities. And at the same time, focus on building the habit of saving money consistently so you give yourself options later.

Abel Curiel · Answer

Welcome to BiggerPockets, Alex!

100% agreed with @Kim Gray - awesome advice and reassurance!

You're on the right path.1 thing I'd add: keep growing your network. Stay active here on BP. Attend Real Estate investing meet-ups regularly. Chat with friends, family, neighbors, co-workers, etc. about Real Estate investing. Some will show interest; very few will be practitioners. Stay close to like-minded people and those already putting in the work.Speak with subcontractors, GCs, and business owners in and around your field. Keep getting your name and face out there. It will help your career and open doors you didn't expect. Networking will also help you in your future RE Investing endeavors. All the best!

Abel

Jason Wray · Answer

Alex,

To be legal you have to be 18 to sign a Mortgage, or Finance contract and in most cases even a "Subject to" contract unless the seller is willing to bend some rules. (Not advised).  If you cannot wait until you are 18 you can ask your Mother, Father, Brother, (Any Family) to buy an investment property and you can be added to title.

After you have been on title for 6 months minimum and you turn 18 you can (if the home has equity) do a cash out refinance or take out a HELOC, HELOAN or 2nd mortgage.  That cash can be used to pay back a relative who helped you buy the home and it can also allow you to use the extra capital to buy another property for the down payment.

In order to do that you have to do your research on if the property is outdated, TLC, or needs Renovations.  Under those circumstances you can accelerate a homes equity which allows you to gauge the ARV "After Renovation Value" which can then be calculated to see how much you can borrower versus what you own on the mortgage or to family.

Best advice is try and focus on a Multifamily like a 2-4 unit where you immediately have renters paying monthly on the other units.  That income can be used to qaulify for the mortgage and helps in the future to decrease your DTI to pull cash out.

You are young but not too young to start to get a leap a head to learn how to avoid how other newbie investors fail on thier first 1-2 properties.  Start learning about your neighborhood or State you want to live/buy in and figure out what is the best rent style meaning STR -Short term rental, LTR Long Term Rental, MTR Mid term rental, or Co-Living.

Each one can be a bigger money maker if you manage the property properly and advertise to the maximum.  I would also learn how to work a Mortgage calculator and always run the numbers based on the full expenses.  Do not just run the principal and Interest or the PITI payment with taxes and insurance.

Make sure you add in any unforeseen cost like "Flood insurance", PM Property Mnagement fee's.  Does it have an HOA, Does the HOA limit or restrict "daily rentals" and require a weekly, monhtly or even 12 month rental agreement.  Avoid Foreclsures unless you have cash in hand because they do not allow normal bank or lender financing.When you are about to turn 18 reach out I can walk you through some basics or feel free to reach out now if you want to map out a plan in advance to be proactive.  In most cases its better to have a family conversation so if Mom, Dad, or other family is around they can be on the call or email.

How can someone start in this business

Most Popular Reply