Fort Collins, CO · Member since 2015 · 13 posts · 6 votes
Hello everyone,
A young person could join the military right out of high school and save up $50,000 during a four-year hitch.
Assuming that young person did a lot of self-study on real estate during his or her military service, could this person get out as a 21-22yo and use that $50,000 to invest successfully in real estate, such that maybe in 10 years or so that person could achieve financial freedom? If so, what are some general thoughts on the path such a person would take?
Thanks so much in advance for your replies. I am an Army veteran and wish I'd been smart about finances; one of my friends saved $100,000 during a five-year enlistment.
I'm working on a little book urging young people to consider other options besides going to college straight out of high school and racking up student loan debt.
I don't have much to offer in return but I am a licensed CPA and could try to answer any basic tax questions you have.
@Eva Arnold - I think that you don't even need to necessarily wait until your 4-year is up, BP has interviewed, and has members who have begun their investing careers while still in the military. I seem to recall one member mentioning that he became an accidental landlord because he was unable to easily sell his house when he was relocated, and ended up renting it out and beginning his investing career.
It's certainly more challenging, and you would most likely need to have a non-military business partner or hire a management company, but it is indeed possible.
Flipping, I believe, requires too much hands-on to do property while in the military, and I don't know enough about wholesaling to comment on the difficulty of running such a business while still in uniform.
I know people with little money and piles of money I do not see any correlation between the cash they have access too and the success/assets they are creating.
Out of college I had a couple friends with +$50K saved and 8 years later they still are saving the same way they did back then.
Out of high school the majority of america stops learning. Yes they get a job, create notes, get raises, learn new tasks. But most people are not opening up there eyes, creating, taking risks, doing more than what is expected.
@Eva Arnold , I think this is an interesting question. I feel that $50,000 is a good amount of savings to be used towards investment but of course it just depends how it is used. There are a lot of people that have millions of dollars or raise millions of dollars (think a lot of today's tech startups) that won't even generate a dollar in profit.
I like your idea of a book for young people to open up their minds to options other than going to college. I feel that there is great value in college, but the financial benefits especially for some degrees aren't that much of a sure thing. I think there is value in higher education, but to think degree will equal big money doesn't always work.
I read recently that lawyers with JD degrees outnumber law jobs 2 to 1! That's crazy! And that's a degree that many view as a sure way to make a lot of money.
The increasing cost of college plays a big role too. Costs have risen higher than inflation.
I don't think that it's crazy to think someone in their early 20s with $50,000 saved up could be successful in real estate and perhaps be better off financially in 4 years than someone that spent those years as a full time student.
I Think doing what your describing is absolutely doable. I began investing at 18 and really spread my wings at 21. If you would like to know more about my story you can find it here on Bigger Pockets Pod Cast 124. I hope my story will help you inspire many others.
@Eva Arnold, I began investing on my own this past year. Bought my first single family flip in December '14 and my second one in January '15. I have a 4 unit multi that I'm rehabbing now with plans to cash-out refi or sell and another single family flip I'm buying this Friday.
I started with less than $300.00 to my name and $20k+ school/car debt.
At the risk of sounding too cliche, "If I can do it, so can you!".
Find a great deal and you'll be able to find the money. Make it happen.
Hi Jered, I wanted to pay you the courtesy of listening to your podcast before I replied.
Wow! Your story is amazing and inspiring! Probably my favorite part was the jaw-dropping maturity of your insight, at such a young age, that "there will be times in my life when I'll want free time more than I do now," which drives you to work extra-hard right now. What kind of 20-year-old thinks like that?? Probably the type who's a retired millionaire at 40!
Thank you so much for recommending your podcast interview. It also gave me the insight that a younger, less conventional investor might want to look into portfolio loans rather than go through all the red tape of getting a VA loan. The advantage of a VA loan is no money down, but a young person with capital wouldn't need that advantage so much.
Yes, I will be referring to you in the book I'm working on, and I do hope your story will inspire others!
Thanks so much for your encouragement! Yes, I saw that same stat about the JD degrees outnumbering attorney jobs 2 to 1! It's unbelievable.
I'm hoping to also reach kids who would normally go to prestigious colleges -- if they simply did a 3-year hitch in the military first, they could attend Columbia University in New York city for free and get paid a $3,759-per-month housing allowance during the academic year. This is through the Post-9/11 GI Bill's Yellow Ribbon program.