Innovative 19 year old highly considering a career in real estate. Advice?
Gettysburg, PA · Member since 2014 · 11 posts · 4 votes
Innovative 19 year old highly considering a career in real estate. Advice?
Most Popular Reply
Real Estate Consultant · Chicago, IL · Member since 2014 · 720 posts · 439 votes
11y@Jason Aviles,
You are getting all kind of great advice on this site. Remember to never follow only one person. Read and listen to everyone you think is relevant, and then use your own judgement in creating a plan to follow based on what you feel is important to you.
Keep in mind that there are two ways of learning: from your mistakes or from someone's else mistakes and that it's faster and cheaper to learn from somebody's else mistakes.
I can tell you from experience (mine and my mentees) that is best to get paid while you are learning the business and especially if you learn from the best.
Start working as a part time RE assistant for the top Realtor in your area, or for a construction company or a management company in your area. Make sure you choose the person you'll work for well, as their knowledge is what you are after.
Stay in school and choose your electives not based on what's the easiest course, but on what you are interested in and will give you the specialized knowledge in your future endeavors. Bill Gates while in college took a calligraphy course because it fascinated him. He said that the Mac would have never had multiple typefaces or proportionally spaced fonts and probably no other programs would be what we have today if he did not take that class. Follow your interests.
As soon as you learn from the first mentor, move on to another position to the next industry. I will go to the following industries in the next few years if I were you: construction, property management, Real Estate sales, Real Estate investors, Financing (mortgage assistant), work for a CPA etc.
By chance I started my Real Estate career as the secretary of a Management Company. I could not have chosen a better path even if I planned it. I've learned how to find, choose and manage tenants, I learned how to analyze and negotiate deals from the owner, one of the smartest people I've me and I also learned how to find deals there.
I've bought my first property and finished the basement acting as the contractor. You can imagine how many subcontractors I had to meet... After work, every night for a month I spent hours in Home Depot buying anything from nails and drywall to kitchen cabinets and plumbing.
I also worked for a short time for a contractor where I was in charge to prepare the estimates, you can't imagine the learning curve I had there.
I moved into RE sales and chose the company that had the top training program and who's broker manager happen to be a buy and hold investor also. I've learned not just how to sell, I also learned how she created a vast portfolio starting with a 2 flat with a finished basement and how she lived in that basement for 10 year while she was purchasing few properties a year.
Because I wanted to understand better how investors are taxed, I took an H&R Block class many years ago, and while I did not learn that much about tax savings, that is at the base of the advice I give my investors and that I apply. That knowledge is enough to know what questions to ask CPAs and when I call IRS.
I've read hundreds of RE books and went to countless RE events, classes and courses. I can't pinpoint one in particular, however all this knowledge helped me to be named in top 1% of Realtors in Chicago, an Association with over 14,000 agents. I did not realize how I differentiate myself from other agents until that moment, when I realized that I sell more than 99 agents out of 100. I think that has been my pinnacle in my RE career, and now I have to hit my RE investment goals, which is next. I've created many millionaires in my career and having those people in my life is amazing. I've also trained a lot of agents that are top agents in Chicago now. And some have started as my buyer agents or just mentees.
I can't stress how important is for you to build a great foundation. You are very young and you have a lot of time. Find that special mentor and be ready to give back in helping them and give everything while working for the people that will teach you the business. Make sure that whatever job you take, part time and full time, you give it all, go way and beyond your job description, and you'll not just see the difference, you will be the difference.
Meanwhile read books on mindset and positive attitude and by 30, you will be a millionaire!
24 Replies
- 11yCurt DavisBusiness MemberFlipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
I have a degree in Business Administration, I am 36yrs old and been in real estate since 2007.
I would suggest you keep moving forward with your college education and keep real estate on the side. There will be plenty of time for this. Get a good education, get a good job and then start building your real estate portfolio.
You should also consider looking into any local investment clubs, start to meet people in your area who are active.
Good luck
Curt Davis - KAIZEN Realty538 Reviews - Gettysburg, PA · Member since 2014 · 11 posts · 4 votes11y
Thank you for your reply Mr. Davis it is greatly appreciated. If I may, I'm curious to know what types of investments you would recommend as a starting point that will not only generate profit but allow me to get a feel for the market?
- 11yBrett SynickyPro MemberSolo 401k and SDIRA Consultant · Orange, CA · Member since 2013 · 875 posts · 498 votes
You just made one of the best networking decisions available! I would certainly finish school as @Curt Davis said.
I began investing in 2005 but just got my license this year. I think I've said this twice today, if I could go back I would have gotten my license the day I turned 18. The beauty of real estate is that you can do it on the side or as a full-time gig. In your case go to school (and finish), get your license, major in whatever subject you want (nothing wrong with real estate) but work on real estate during school and get a part time job. Or better yet get a part time job in real estate!
Don’t forget to set up your keyword alerts so you’ll be notified when a forum post mentions something you’re interested in:
http://www.biggerpockets.com/alerts
Check out this page to find BP members near you:
http://www.biggerpockets.com/meet
Best of luck!
- 11yCurt DavisBusiness MemberFlipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
Most new investors are looking to wholesale or assign a property to a buyer.
Driving for Dollars and Bandit Signs area great place to start if you have the time and energy. I did a podcast on this subject, you can listen here if your interested.
Good luck
Curt Davis - KAIZEN Realty538 Reviews @Jason Aviles Our Brandon Turn wrote a great article here: How to Start Investing In Real Estate at a Young Age (or a “Young at Heart” Age) You might enjoy that.
Personally, I landed a well paying/secure job at age 26 and I decided to save as much money as I could to buy my own primary residence to live in (I lived with my parents at the time). I spent that time saving up money, fixing my credit score, and educating myself on real estate investing. I bought my primary residence and began renting out the spare rooms. Since then I've made a lot of REI acquisitions, but I wouldn't have been able to qualify for much of the financing on my own if it weren't for my W-2 job!
I think becoming an RE Agent is a great way to learn the business and make great money, but only if you hustle! It can be well paying, or leave you broke.
- Real Estate Consultant · Chicago, IL · Member since 2014 · 720 posts · 439 votes11y
@Jason Aviles,
You are getting all kind of great advice on this site. Remember to never follow only one person. Read and listen to everyone you think is relevant, and then use your own judgement in creating a plan to follow based on what you feel is important to you.
Keep in mind that there are two ways of learning: from your mistakes or from someone's else mistakes and that it's faster and cheaper to learn from somebody's else mistakes.
I can tell you from experience (mine and my mentees) that is best to get paid while you are learning the business and especially if you learn from the best.
Start working as a part time RE assistant for the top Realtor in your area, or for a construction company or a management company in your area. Make sure you choose the person you'll work for well, as their knowledge is what you are after.
Stay in school and choose your electives not based on what's the easiest course, but on what you are interested in and will give you the specialized knowledge in your future endeavors. Bill Gates while in college took a calligraphy course because it fascinated him. He said that the Mac would have never had multiple typefaces or proportionally spaced fonts and probably no other programs would be what we have today if he did not take that class. Follow your interests.
As soon as you learn from the first mentor, move on to another position to the next industry. I will go to the following industries in the next few years if I were you: construction, property management, Real Estate sales, Real Estate investors, Financing (mortgage assistant), work for a CPA etc.
By chance I started my Real Estate career as the secretary of a Management Company. I could not have chosen a better path even if I planned it. I've learned how to find, choose and manage tenants, I learned how to analyze and negotiate deals from the owner, one of the smartest people I've me and I also learned how to find deals there.
I've bought my first property and finished the basement acting as the contractor. You can imagine how many subcontractors I had to meet... After work, every night for a month I spent hours in Home Depot buying anything from nails and drywall to kitchen cabinets and plumbing.
I also worked for a short time for a contractor where I was in charge to prepare the estimates, you can't imagine the learning curve I had there.
I moved into RE sales and chose the company that had the top training program and who's broker manager happen to be a buy and hold investor also. I've learned not just how to sell, I also learned how she created a vast portfolio starting with a 2 flat with a finished basement and how she lived in that basement for 10 year while she was purchasing few properties a year.
Because I wanted to understand better how investors are taxed, I took an H&R Block class many years ago, and while I did not learn that much about tax savings, that is at the base of the advice I give my investors and that I apply. That knowledge is enough to know what questions to ask CPAs and when I call IRS.
I've read hundreds of RE books and went to countless RE events, classes and courses. I can't pinpoint one in particular, however all this knowledge helped me to be named in top 1% of Realtors in Chicago, an Association with over 14,000 agents. I did not realize how I differentiate myself from other agents until that moment, when I realized that I sell more than 99 agents out of 100. I think that has been my pinnacle in my RE career, and now I have to hit my RE investment goals, which is next. I've created many millionaires in my career and having those people in my life is amazing. I've also trained a lot of agents that are top agents in Chicago now. And some have started as my buyer agents or just mentees.
I can't stress how important is for you to build a great foundation. You are very young and you have a lot of time. Find that special mentor and be ready to give back in helping them and give everything while working for the people that will teach you the business. Make sure that whatever job you take, part time and full time, you give it all, go way and beyond your job description, and you'll not just see the difference, you will be the difference.
Meanwhile read books on mindset and positive attitude and by 30, you will be a millionaire!
- Real Estate Investor · Rancho Cucamonga, CA · Member since 2014 · 258 posts · 90 votes11y
I give you a million dollars idea....find the best agent in town and offer to work part time for him/her for FREE in return for him/her teaching you the business. This can give you a edge over the competition for a life long career.
Look at it this way.
you could get paid $12 an hour while he or she earns $250 an hour. Could you afford to hire him/her. NO....so you do fine not charging work for advice and hands on training...don't worry you pay will come.
Best wishes to you champion.
- Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes11y
Welcome. I have buddies getting SFR in PA from the county tax repository sales for $500-2,500 each. Take a good look at providing student housing. Stay in school and learn everything you can. Fill in the foundation below.
Check out the Start Here page http://www.biggerpockets.com/starthere
Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.
Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 90 past ones to catch up on.
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers.
Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook
You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
Good Luck
Paul
- Real Estate Broker · Indianapolis, IN · Member since 2009 · 575 posts · 496 votes11y
I would suggest starting a service business that directly relates to REI... lots of people do wholesaling but I think thats a bit saturated nowadays..
I started a thread last night about what I did to get going... If you care to read it here is the link!
- Investor · San Ramon, CA · Member since 2011 · 1k+ posts · 569 votes11y
If you aren't looking to profit and you have your cost of living covered (room & board in school or your parents house and kitchen), here's what I'd do.
Find a local REI meeting... I went to my first one on Monday. At the start of the meeting they had every person in the room give a 15 second to 1 minute introduction... who you were, your background, what you had, and what you needed. I'd go there, introduce yourself as a 19 year old student interested in learning, tell the group you are looking for some unpaid internships... be willing to do trash outs for flippers, post notices for landlords, place signs or lick envelopes for wholesalers.
If you don't "need" money, you have a great opportunity to add value to others (just about anything for free is value added) and through that get a broad experience. As your value grows through these experiences and you figure out what interests you, you can focus that and eventually start even getting a cut for the work you're doing.
Best yet, start now and you might be able to tailor your education some... maybe you take a few more marketing or accounting classes, entrepreneurship or any of a vast array depending on your long term goals...
- Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes11y
Welcome to BP community @Jason Aviles It is a great place to meet new friends and learn about various aspects of real estate and more.
Wishing you the best!
- Gettysburg, PA · Member since 2014 · 11 posts · 4 votes11y
@Curt Davis Thank you for your reply! I listened to your podcast twice actually and took a bunch of notes from what you spoke about and am looking forward to reading your ebook! It was a very informative podcast thank you for sharing this! I think that the beginner techniques you spoke of are some that I will highly consider as sort of a stepping stone into this market. Not only that but since they seem to be reasonably affordable that makes them more suitable for me at the moment. I will get back to you once I have read your ebook with any questions that I may generate that i'm sure you could assist me with. Again thank you for your reply it is greatly appreciated.
- Gettysburg, PA · Member since 2014 · 11 posts · 4 votes11y
@Brett Synicky Hey Brett! Your advice on finishing school and keeping real estate as a part time into a potential full time job is something I am highly considering. I currently see the benefits of attending a 4 year university as a way to not only continue my education but as a networking opportunity. Thank you for your reply and I will keep what you said in mind!
- 11yCurt DavisBusiness MemberFlipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
Thanks for the feedback and I am glad you liked it!!!
Let me know if I can ever help.
Curt Davis - KAIZEN Realty538 Reviews - Gettysburg, PA · Member since 2014 · 11 posts · 4 votes11y
@Mehran K. Hey! I finished reading over the article that Mr. Turn wrote! It was a humorous but informative piece that I found pretty interesting, thank you for sharing! I admire your decision making, it seems to me that you were wise about the moves you made and they paid off. I hope to make this a well paying investment with hard work and the right mind set. Thank you for your reply!
- Gettysburg, PA · Member since 2014 · 11 posts · 4 votes11y
@Lumi Ispas Hey! Thank you for your reply! In your first paragraph alone I was already fascinated by your mindset because it is fairly similar to mine! That is very good advice that I try to implement throughout my everyday life and am glad that you shared that! That alone has shown genuine care for the success of others and I appreciate that! Your story is quite fascinating also and I even took the time to write down some of the tips you spoke of. Your ambition and dedication is something that I want to emulate! Your accolades are quite impressive and I can assure are well deserving. Again thank you so much for taking the time to give such an informative reply. I now wish I lived closer to the Chicago area because meeting and getting mentored by someone like you would be a dream!
- Gettysburg, PA · Member since 2014 · 11 posts · 4 votes11y
@Morry Eghbal Thank you for your input Mr. Eghbal! That is actually a great piece of advice and I will actually begin taking action on that as soon as I can. I really do think the free labor would be well worth it for the knowledge that I could potentially gain. Thank you for your idea sir, it seems like a brilliant first step!
- Gettysburg, PA · Member since 2014 · 11 posts · 4 votes11y
@Paul Timmins Hello Mr. TImmins I appreciate your feedback! If you don't mind me asking, What part of PA are your friends from? Thank you for your advice! I will look into student housing as I think that would be a great way to gain some experience. Thank you for the links I will be sure to read the books and the beginners guide that you have recommend for me! I really think this could be a great way to generate some profit in order which would then allow me to begin buying properties! Your advice is greatly appreciated and is very informative.
- Gettysburg, PA · Member since 2014 · 11 posts · 4 votes11y
@Ryan Mullin Hello! That's an interesting idea and one that I am highly considering. I read your thread and found the method very interesting. Once I familiarize myself with my states RE laws and licensing I would highly consider this tactic as it would be a starting point that accommodates my low budget situation. Thank you for your advice it is greatly appreciated.
- Gettysburg, PA · Member since 2014 · 11 posts · 4 votes11y
@Nathan Emmert Hello! I am currently looking into finding an REi meeting I can attend as I believe that would be a great way to start! I wouldn't mind volunteering to do some work in exchange for some experience that sounds like a really good idea! I think you are right about taking classes in entrepreneurship and other aspects of business. Thank you for your reply and I will take your advice! Also thank you for letting me know what to expect at an REi meeting more or less, I will get back to you about my first meeting as soon as I can find some in my area!
While i can certainly understand the urge to jump in with both feet now, i can speak from personal experience when i recommend you- complete your education, get a good job, save massively for a few years and then plan to systematically build a buy & hold portfolio after that (at least in my case). Keep doing this until you reach a point where you have sufficient semi-passive (landlording is not all passive if you self manage) income and know how to allow you to then venture into other R.E investment arenas; such as flipping. If you planned to venture into flipping first, the change to the strategy above would be to save massively for a slightly longer period after college to self fund your acquisition + rehab costs(repeat X amount of times) and reinvest portions of your gain into a buy n hold fund (which you can then decide to use toward down payments on a loan-assuming you hold on to your job or pay cash for rental properties). Hope this gives you some perspective.
Des
- 11yJon HuberPro MemberRental Property Investor · Boca Raton, FL · Member since 2014 · 1k+ posts · 713 votes
Welcome to the community! Remember to be as active and engaging as you can. There is a wealth of information on BP, but only if you seek it out. Ask questions, read blogs, and the podcasts are golden. The best free education you can get!
I got my real estate license 10 years ago, at the age of 23. I was in the same boat with you, as I was still going to college part time. I became an assistant/buyers agent for a high powered realtor. She was the #1 realtor in the area and needed the extra staff. I was young and teachable... and wanted to learn. I worked hourly and received a commission cut only when one of MY buyers purchased. I did that for two years before selling on my own. It helped me learn the business from one of the best, and that was more valuable than the hourly rate. I hope this helps...
Also.... I would opt for Business Mgmt if you are having trouble deciding.
Good luck!
- Real Estate Investor · Rancho Cucamonga, CA · Member since 2014 · 258 posts · 90 votes11y
@Jason Aviles I am very proud of your, keep working at it.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.