I am 16. I want to invest in Real Estate. Where do I start?

Question

I am 16 I have $1000 I made this summer. Currently I have all of this money in a stock trading account. I have been trading for a few months. It is not for me. I want to do real estate. I want to do it now. Where do I start with the money I have? What investments would be good for me to achieve my overall goal of a Ferrari?

Ned Carey · Answer

Welcome to BP @Jackson Maitner

Real estate is not a get rich quick game. It is a get rich slowly and consistently game. The best way to lose that $1000 is to be in a hurry.

Take time to learn the business, learn how to evaluate deals and learn your market. You can do all of that for free. and most of it right here on BP

Justin Taber · Answer

Get a credit card and be sure to pay it off, building good credit will be invaluable when you go to the bank in the future.

Aaron Mazzrillo · Answer

The first step is to ask permission from your mom. Since you're a minor, you cannot sign a deed that would be valid. Sux, but so is life.

Don't let it stop you from getting an education and saving up some more money. You'll be ready to rock when you turn 18 and will be able to legally transact without parental consent.

Roland Thomas · Answer

Sum* - typo

Roland Thomas · Answer

"Notes" are promissory notes aka "mortgage note" on a home, and there is a side of real estate investing that buy and sell mortgage notes for good sustainable passive income as well as lump some cash.

Shawn Jacobs · Answer

@Jackson Maitner,

@Michael Lerch and @Brandon Krieg organize a local monthly Real Estate Meetup. I would try to network with as many investors as possible, to try and find your niche. Whether it's rentals, wholesaling, sales or rehabbing, there are many avenues go down.

http://www.meetup.com/WestMichiganREIClub/

Good luck!

Shawn

Brandon Krieg · Answer

Hi @Jackson Maitner - Great to have you!

First, you already seem way ahead of most people at 16 in terms of planning.  Nice work.

Second, keep your enthusiasm, and plan for the long game.  You have a huge advantage in terms of time, and starting early.  You have a (possible) disadvantage with people not taking you seriously due to your age.  I am many years older than you, and still see disbelief when I tell people in their 60s that I can purchase their home with cash.  You can counter this by being serious, and getting some time in the industry.

If I were you, I would try to find a 'nights and weekends' job in a real estate related field.  Property manager, realtor's office, appraiser, inspector, anything really.  This will allow you to earn more money and learn a ton about the industry.

After that, I would start going to networking meetings, and offer your skills to help people out.  Offer to cut lawns and paint for a house flipper.  Offer to go take pictures of a property for a landlord.  Whatever it takes to get your foot in the door, and to start making connections.

With connections, you can turn $1000 into a lot more than that.

Also, protect that money!  It's amazing how quickly you can spend money that you spent months earning.  If you're serious about investing, ONLY use it for investing.  Marketing, research, books, gas to look at houses, etcetera.  Otherwise, it'll be gone before you know it.

Good luck, and keep at it!

Jackson Maitner · Answer

Thank you! Very helpful

Jackson Maitner · Answer

What are notes secured by real estate?

Joel Gabelman · Answer

Unfortunately, $1k isn't going to get you very far...

I would try to go to REIA (Real Estate Investors Association) meetings, look at www.meetup.com for real estate investor groups, and see if you couldn't intern/shadow a GOOD (successful/smart/etc...) investor during summers or weekends.  Ideally, you could work for free for a little, and then see if you can't turn that into some money, or even a little equity in a deal.  If you even have 2% equity in a deal that's $100k (assuming no debt), there's $2k for you.

Another idea is to get friends together an pool your money.

You're in a good place and mindset to get going early!

Best of luck.

-Joel

I am 16. I want to invest in Real Estate. Where do I start?

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