Pheonix, AZ · Member since 2021 · 11 posts · 12 votes
Hi, I am 16 years old and I want to get a rental property, but I don't have enough money yet, and I will soon have a job that only makes me $15 an hour, so I have considered getting a partner, but where do I find a partner that could potentially finance a real estate deal?
Rental Property Investor · Norfolk, NE · Member since 2020 · 38 posts · 40 votes
4y
@Jose Lopez you can do this. When I ask what would I look for in a young inexperienced investor, here is what I see. Someone I admire at the stage they are in. Share that you are looking forward to your first deal. Go to meet ups. Listen and learn. Work on creating a clear vision. Be a go to guy for others. Bird dog deals for investors. Help with rehabs. Be consistent. Save up some money. Get to know meet up organizers. Show up early to help set up. Clean up after. Run technology. Mow rental yards when vacant. There are lots of things you can do that are little and they add up. Be faithful in the little things and the bigger things will come.
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
I admire your enthusiasm.....but ask yourself this: if you were the potential partner with the money....what would they see you bringing to the table? Anything?
Figure out what that value is and then go and learn it well...then, maybe you can ask someone for money.
I was a full-blown GC with decades of experience, a crew and equipment and I still had trouble attracting money partners. They all wanted me (and they'll want you) to have some 'skin in the game'
Hi, I am 16 years old and I want to get a rental property, but I don't have enough money yet, and I will soon have a job that only makes me $15 an hour, so I have considered getting a partner, but where do I find a partner that could potentially finance a real estate deal?
What contribution are you planning to provide to the partnership?
Rental Property Investor · Norfolk, NE · Member since 2020 · 38 posts · 40 votes
4y
@Jose Lopez you can do this. When I ask what would I look for in a young inexperienced investor, here is what I see. Someone I admire at the stage they are in. Share that you are looking forward to your first deal. Go to meet ups. Listen and learn. Work on creating a clear vision. Be a go to guy for others. Bird dog deals for investors. Help with rehabs. Be consistent. Save up some money. Get to know meet up organizers. Show up early to help set up. Clean up after. Run technology. Mow rental yards when vacant. There are lots of things you can do that are little and they add up. Be faithful in the little things and the bigger things will come.
Buffalo, NY · Member since 2018 · 790 posts · 530 votes
4y
@Jose Lopez you may not find a partner overnight, but follow @Tim DeFor’s suggestions - try to connect with and get to know as many investors as you can. Provide services for them that they can’t or don’t want to do.
Another thing to do at 16 is start building your credit. Have your paycheck direct deposited into a local bank or credit union. Then ask that bank for a low limit credit card so you can start with a credit history. Just be sure you pay it off every month.
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
4y
@Jose Lopez Do you have any construction skills, office backend skills, or are you just willing to roll your sleeves up and learn? At this particular time in the cycle it is almost impossible to fill $15-$20/hour type jobs.
No one wants them, jobs that used to get dozens of applicants are getting zero. It may be a good time to work for established investors and prove yourself/learn the business if you are willing to fill that need for them.
Investor · Fort Worth, TX · Member since 2021 · 68 posts · 57 votes
4y
@Jose Lopez you're going to have to walk before you can crawl. Full appreciation for your goal in place here, but you'll need to bring more to the table. Also you say "considered getting a partner", I believe you have to have a co-signer of legal age in order to purchase a property though. Until you turn 18 at least. At your age now, I would be trying to build a skillset to make myself of value in a future partnership. Learn skills that could contribute to property management- maintenance/ rehab, and save money so that you are more financially equipped to start this endeavor in the future. Just my 2 cents
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
4y
@Jose Lopez It is very admirable that you have are excited about real estate at such a young age. You are focusing in the wrong thing at this point.
- You are not old enough to sign contracts and buy real estate. Set your expectations at 18 or older for your first purchase.
- You have most likely not graduated high school, let alone college. Your job at 16 should be getting an education. Math is especially critical when investing. You should be researching colleges. At a minimum I would suggest an associates degree or tech degree. Ideally if you plan to invest or run a company, consider some type of business or finance degree.
- You say "only makes me $15 an hour" but you should be aware that working 40 hours a week at $15 an hour is more income than the US poverty level for a family of four. I am not saying to be complacent with your salary, but also be aware that $15 is good for someone your age who would have limited experience.
- I would argue the pay of your job is less important than the type of job. When you are young, you should pick jobs for experience rather than just income. You could go to work for a real estate agent or property manager. Even if they pay is lower, think of it as an internship. Learn skills today to get you higher income tomorrow. This is true of anyone under the age of 30. I have seen too many people gravitate towards high paying jobs when young that are often manual labor. Those jobs pay lower when you are older. Use your brain to make money, not your body.
- Have you considered starting a small business instead of working for someone else? This benefits you two ways. You will make more money, but also learn the skills to run a business. Advertising, customer service, estimating, accounting, business deductions, taxes, etc. All these skills are transferrable to any business. You could clean pools today and get into real estate tomorrow.
- The important question asking about a partner is who would want to partner with you? Don't be offended but someone with money is going to consider it risky to partner with a 16 year old that has no experience. Build a resume or portfolio of success. That includes education, certifications, work history and completed projects you can references.
- One of the best sources for partners is family members. They know you and trust you. This isn't an option for many people, but tapping your circle of family and friends is always a good starting point when looking for partners.
@Jose Lopez try WHOLESALING REAL ESTATE, go to YouTube and research try Jacob Blanks and Zach Ginn they were about your age when they started and are still pretty young.
Investor · Tampa, FL · Member since 2020 · 287 posts · 152 votes
4y
@Jose Lopez the biggest value you can bring is coming to a partner with a good deal. If the margins are there you will have no problem finding a partner to put up the money.
Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
4y
@Jose Lopez Research the concept of house hacking. It’s the very best way to start investing in RE imo. Save every nickel you can over the next couple of years and focus on growing your income. House hack your first property. Also, read the book Set For Life. Good luck young man!
Investor · Stockbridge, GA · Member since 2015 · 7 posts · 1 vote
4y
@Jose Lopez I totally agree with @Tim DeFor. You are not of legal age yet, for now Knowledge is your first investment, then seek out a mentor that you can offer them something in return.
You Will Succeed. I suggest you buy this book "A Teenager's Guide to Achieving Early Financial independence" FIRST TO A MILLION (by Dan Sheeks) I purchased for my son. It's a GREAT Start !
Hi, I am 16 years old and I want to get a rental property, but I don't have enough money yet, and I will soon have a job that only makes me $15 an hour, so I have considered getting a partner, but where do I find a partner that could potentially finance a real estate deal?
Great! Good time to start looking forward.
You've got a couple of years before you can legally enter into a contract. So, this is the time to study and start finding answers to your questions.
Fund raising is the primary occupation of every successful investor who has learned that while you need money and sometimes credit to do deals, those need not be your own. Your money partners could be family, friends, neighbors, ... anyone who knows and trusts you. Your job is to explain why investing in your deal is beneficial (and profitable!) to them. Another facet of that is being able to show how prospective investors can make better use of their retirement accounts and other resources than investing in Wall Street and hoping for the best. That is, as others have hinted, you need to bring to the table the knowledge your prospective investors may lack.
So, that's where I recommend you start: learn how to raise funds for deals, and what you'll need to know so you can illustrate the value proposition a deal may represent.
Good luck! Just keep saving money for the next 2 years and hopefully you can have enough to help with a down payment. I say 2 years because you are 16 and, unfortunately, you need to be 18 to buy a home (because you have to sign contracts). BUT - that's good! You have 2 years to EDUCATE yourself as much as possible about what sort of investments you want & how to work the numbers, EARN as much as possible for a down payment, and NETWORK with as many people as possible within the REI world. Don't listen to anyone who has 2 word answers that are useless, keep your head in it and in 2 years you can win it.