22 Year Old Aspiring Investor, Looking to Learn More

19 Replies

HI all,

Let me preface this by stating I've utilized the search function to go through threads for kids similar age as me who want to get into Real Estate Investing. Despite this, I'm a bit ahead of the curve and am looking for guidance as to where to go next.

Currently, I work for a luxury brokerage out of San Diego as an assistant to a top producer providing marketing and management of all digital platforms; I received this opportunity through DMing multiple agents on Instagram hoping to get a job after my return from a study abroad as a way to learn about real estate. I did this because I have aspirations to invest internationally in several locations in central and south America and didn't want to just talk the talk or be a wantrepreneur, rather put myself in the field and put the building blocks together myself..

I am currently waiting for the CA Bureau to approve my license application so I can take the test to receive my RE license (completed the course work in Spring of 2018 while going to school full time, working part time). I have full access to the MLS, have a general understanding of how to utilize it, and currently walk properties almost every Tuesday to get a feel for my market demographic and what's selling. I also network with various agents on these caravan tours.

Well all of this is great, a lot of social media real estate "gurus" are peddling the "get rich through real estate" scheme via Wholesaling. Obviously, this has caught my eye as well, as both the Instagram ads and various investors I follow, are really pushing their exorbitantly priced online courses to learn XYZ. I've even had several interactions with these individuals via social media and one in person meet up, but was turned off by their general demeanor and the lack of willingness to share basic tips in return for my own knowledge on digital platforms.

 I've come here to seek knowledge and guidance from various individuals on the investing side in tandem with my mentorship/job on the residential luxury side. Besides introducing myself, I'm looking to network with individuals both my age or older who are active on these forums to build a young investors/RE professionals group in Socal. If such groups already exist, any arrows pointing to the right links or directions would be greatly appreciated but based off my searches on Google, I've come up empty handed.

Looking forward to learning, networking, and hopefully meeting more invididuals! :)

@Jack Greener welcome aboard. I started at 22 myself (almost 24 now). There are many ways to make money in real estate and it really depends on what you want.

In theory wholesaling is a good way to go as you build money and then go buy rentals. In reality it’s very hard and I don’t recommend this path on anyone.

You’re getting your license which is a good way to start. You, like me, are young so don’t think of this path as a 1-3 year thing, think 15 years.

The easiest thing to do is save money from some sort of full time job then go buy rentals. Since you’re in CA this is likely out of state, which is what I did. I live on the other coast. Stack rentals until you get to probably 20-30 and then maybe start partnering and doing bigger deals. Do that enough and poof you’re a full time investor

@Caleb Heimsoth this has been what I've been aspiring towards actually, the owning rental properties. I have relatives in the midwest in locations that are booming industry wise but prices remain at the 75k-150k for residential family homes in lakefront areas. My issue currently is more consistent income as I'm on commission percentages as an assistant and carrying a mortgage while I theoretically would wait for renters would drain my resources after rent/food/bills. My goals include saving about $10-15k while at home this summer which I'm on track to hit within the next 2 weeks, it's just the initial downpayment that I'm working towards for that first property.

@Jack Greener what did you study in school?  The whole commission thing is going to be an issue for most lenders, until you work in that field for a couple years.  If possible I’d find a W2 job.  

Let’s say you want to buy a 100k rental in Cleveland.  So that’s 20k, plus the 4-5k closing costs.  Then the lender has to make sure you have enough income to cover the debt, which is the issue you’ll come into since it’s inconsistent 

@Caleb Heimsoth sustainability/enviro science. I have pretty extensive experience in B2B sales, marketing, and event management. Good to know but I will most likely be switching fields temporarily come next year once I finish school, your point just hammers the need to change eventually.

@Jack Greener if you’re switching then yeah it won’t really matter what you do now, just save as much as you can.

I’m very realistic and blunt, and I’m a believer in taking the path of least resistance, which is what I describe above.  There are other ways to do it but they’re much harder.  The biggest issue with my way is just waiting.  Average purchase time between properties is 6 months.

@Jack Greener Have you considered starting completely passive with real estate investing? Real estate syndications are a great way to earn solid returns while not having to actively do anything. If you would like to discuss further, I am more than happy to help.

Jack,

Hi, and welcome to bigger pockets. It sounds like you've already done quite a bit with real estate already. Believe it or not, there are quite a few individuals who are under 25 and are doing very well in real estate. I think you are on the right track finding individuals and mentors who can help you on your journey and learn what you need to know, however it is important to figure out what you want to do and pick a mentor based on both of your interests. Personally, I went through a couple different 'mentors' before finding someone who's interests aligned with my own. Unfortunately, building these relationships doesn't happen overnight, they take time and trust to form. After initial contact, I've offered to take people out for lunch or property/project tours to network and build a relationship. Often, these contacts will then introduce you to other contacts who are legit players in RE. I've found almost all my contacts through meetups on meetups.com or through a local REIA meeting. I've found it very difficult to get to know someone online without any face to face contact. I've had maybe a 1:10 ratio of people who are legit in RE to people I don't want to network with. Many of these people aren't flashy and don't need to advertise who they are and what they do.

Since you mentioned you are in school, it may be worth trying to find a group of students to start a RE investing club and bring in speakers from the industry to give talks. It helps if you can leverage your school's name to meet new speakers and will also grow your network. I know someone here who runs one of these clubs very successfully.

I've never attended a RE guru seminar, but from the snippets I've seen, its the same content as in the books and the BP podcasts, but dressed up in a funny story or some other fun form. I haven't spent a dime on RE education other than paying for meals as networking events are sometimes hosted at restaurants. 

Best of luck, this game is persistence and hard work!

Originally posted by @Caleb Heimsoth :

@Jack Greener if you’re switching then yeah it won’t really matter what you do now, just save as much as you can.

I’m very realistic and blunt, and I’m a believer in taking the path of least resistance, which is what I describe above.  There are other ways to do it but they’re much harder.  The biggest issue with my way is just waiting.  Average purchase time between properties is 6 months.

I'd rather have 110% honesty and clarity than sugar coating your responses, so I appreciate your input. I'm not in it for the "get rich quick" schtick, this is a long term play, hence starting young at 22.

Originally posted by @Jeremy Lee :

Jack,

Hi, and welcome to bigger pockets. It sounds like you've already done quite a bit with real estate already. Believe it or not, there are quite a few individuals who are under 25 and are doing very well in real estate. I think you are on the right track finding individuals and mentors who can help you on your journey and learn what you need to know, however it is important to figure out what you want to do and pick a mentor based on both of your interests. Personally, I went through a couple different 'mentors' before finding someone who's interests aligned with my own. Unfortunately, building these relationships doesn't happen overnight, they take time and trust to form. After initial contact, I've offered to take people out for lunch or property/project tours to network and build a relationship. Often, these contacts will then introduce you to other contacts who are legit players in RE. I've found almost all my contacts through meetups on meetups.com or through a local REIA meeting. I've found it very difficult to get to know someone online without any face to face contact. I've had maybe a 1:10 ratio of people who are legit in RE to people I don't want to network with. Many of these people aren't flashy and don't need to advertise who they are and what they do.

Since you mentioned you are in school, it may be worth trying to find a group of students to start a RE investing club and bring in speakers from the industry to give talks. It helps if you can leverage your school's name to meet new speakers and will also grow your network. I know someone here who runs one of these clubs very successfully.

I've never attended a RE guru seminar, but from the snippets I've seen, its the same content as in the books and the BP podcasts, but dressed up in a funny story or some other fun form. I haven't spent a dime on RE education other than paying for meals as networking events are sometimes hosted at restaurants. 

Best of luck, this game is persistence and hard work!

Hey Jeremy, really appreciate your lengthy response. I plan on joining my Real Estate Club in the fall semester and have already networked with several individuals in the organization. My current mentor has been great and I have learned a lot in the 6 or so months I've been with him, but as you said, there's always room to learn from those that align with specific interests and I will be keeping that top of mind through the end of this year.

You're starting young.  I wish I started earlier but I was busy in my 9-5.  My only 'real' job.  I started RE at 32, so 10 years past you.  But I'm 43 now and fully 'retired'.  I just keep going because I like to and see no reason to stop.  However if I really wanted to stop the portfolio beast I made would easily provide for whatever life I wanted.


Long story short:  That's great you're starting so soon.  By the time you're 30 you should be on easy street. 

@Cody L. I appreciate the response. Yes, there's been several skills I've acquired/learned before I turned 18 that I carry with myself every day. I see real estate as another ongoing skill that would be best to learn now and excel at rather than wait and talk about what could have been down the line; life is too short not to thrive!

Originally posted by @Jack Greener :

@Cody L. I appreciate the response. Yes, there's been several skills I've acquired/learned before I turned 18 that I carry with myself every day. I see real estate as another ongoing skill that would be best to learn now and excel at rather than wait and talk about what could have been down the line; life is too short not to thrive!

 Absolutely. 

Hello @Jack Greener thank you for starting this thread. I've sent you a private message as I am also living here in San Diego and interested in getting into RE investment. I am a 24 year old graduate of LMU and just moved back here from Los Angeles.  I am currently in RE training and on the track to save up and acquire my first rental property. I'm currently looking at cities back east like Pittsburgh which has a great market for rentals and seems to be a city on the rise! @Jeremy Lee I would love to get your feedback on this. I've sent you a PM as well. Jack, let me know if you're interested in getting a network group together, made up of other young investors, some time for coffee! 

- Savannah

@Savannah Lewison , its nice to meet you and it sounds like you are on the right track by studying different markets and analyzing different properties. It may be very difficult to initially start investing remotely if you have no previous experience in real estate or rentals. Books, podcasts, mentors and training are a great way to get initial knowledge, but without understanding how to find/id deals, PMs and contractors in the specific market that you are targeting, there is still a large knowledge gap. If you are looking to live there for a few years to establish a network and hands on experience, that would be a great way to get started. Also, when identifying markets to have your rentals in, I would suggest finding somewhere that you don't mind visiting.

If you have specific questions about my experience, feel free to send me a PM. 

Best of luck, 

Jeremy

Pittsburgh is a great rental market in that you can still get decent properties for < 50K. The downside is that most of the houses in Pittsburgh are over 100 years old and need some work. With old houses, things break fairly regularly so if you don't have a good local team to fix things, you will either frequently overpay for repairs or get bare minimum fixes that don't last very long. 

@Savannah Lewison As you stated Pittsburgh does have a great market for rentals. The buy-in can be a lot better than many other more saturated markets. Cash flowing properties can be found with strong ROI but it's beneficial to do your due diligence first as Pittsburgh is a bit tricky on finding deals. While searching by neighborhoods is a good start, more often deals have to be found looking street by street. Pittsburgh certainly is a city on the rise due in part to the technology boom in our area, a strong established healthcare system, A Mayor and our County Executive who are very proactive on their initiatives that are attracting big businesses, a strong recovering economy and the continuation of new construction. 

And yes @Dan Mason while properties under $50k can be found, as you mentioned those are typically the ones that are the aged homes needing a lot of attention and money to fix up. However I've heard it often said, "you get what you pay for". And I believe it's no different in real estate investing. Many find bumping up their purchase price, albeit slightly, might yield better results.  So @Savannah Lewison, whatever market you choose, first determine what/where you are looking, be automated in your searches, get financing in order, move quickly on deals and most definitely feel free to reach out to others that know your market of interest. Best of luck everyone.

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