I’m 16 and am getting into real estate

14 Replies

I just turned 16 and want to learn as much as I can about the real estate world before I get into it. I’m currently saving money so when I’m of age I’ll be able to go right in, what are some things I should focus on learning now . I plan and becoming a landlord as well as flip houses later down the road. Anything helps thanks

@Herman Ruiz id say focus on reading as much as you can on real estate strategies and on managing your finances. Then listen to some podcast so you can hear real peoples storys. Learn from their mistakes. Also learn from their good experiences. By doing all this you will learn all the termonolgy, learn the steps to preparing and finding good deals, and just make for a smoother transaction.

Since youre so young im not sure if you want to live on your own so quickly but once you turn of age (18 i believe) you can use your FHA and do something called house hacking. If you dont understand what it is after you research it let me know and ill try and explain it. Goodluck! And dont give up! Im on the same journy as you but you have the advantage of being so young with the right head on your shoulder!

Hey! I am also 16 and we are on the same boat. For the past several months I have been doing extensive research on real estate and finding the details in every last aspect of it but I wouldn't advise over analyzing everything because it takes money to make money and you can't flip or start cash flow properties without a fairly large capital so I would recommend focusing on wholesaling which is an easy way to start building capital if you really work at it. People say it doesn't cost money to get started but it does for example: marketing which can cause hundreds, or even thousands but if properly done the returns can be very rewarding. You could also go under the wing of a local experienced investor and offer to work for free or little pay because networking and relationships are very important in this business. Try going to your local REI groups and start networking. When I started out I had very little capital and resources to actually find deals for wholesaling so I called up a close friend who is very ambitious and always looking for new opportunities to make money and proposed the concept to him, and since I researched everything and basically knew the ins and outs of everything in wholesaling he agreed to pay for marketing and we also "drove for dollars" so I could scout deals because I didn't have my license yet and we would split the deal 50/50. But yeah network a lot and make valuable connections.

@Muazzaz Choudhury
@Herman Ruiz

My son is 16. His schedule is very full and he has not shown the same self interest in RE as either of you but this is what we have done.

- He started a handyman/gardening business ~2 years ago. As indicated he does not have much time so he has hired an employee (one of his best friends). He has not yet figured out that the person that brings in the business is supposed to take a cut but ... We often use him as our handyman even though it can be real inefficient especially if the work has to be heavily corrected. Most RE investors when they start out their margins are small. Doing a lot of the work yourself can significantly help with the profit. This can prepare him for the lean starting out times.

- I offered to pay him to read Rich Dad, Poor Dad: What the Rich teach their kids that the Poor do not. He has not finished. I am considering to make a similar offer to my son's employee. This gives a big picture on investment versus liability, short-term sacrifice for long term gain, the value of understanding money and rules (rules constantly change), etc.

- He has followed us on many aspects of a value add rehab. This included picking out cabinets, counters, flooring, paint, dealing with contractors, etc.

- He has held significant responsibility for a tenant turnover (tenant moved in Sept 1). Due to the unit being in worse than usual shape and my son's busy summer schedule, letting him be responsible for the turn over extended the vacancy so it cost me financially (maybe 4-6 weeks extra at a rent rate of $1700/month). Obviously I am hoping he learns enough to justify the cost. Most important to have learned might be the need for speed on tenant turn over.

- He wants to do a flip with his employee but the tenant turnover time tells me it could take over a year and it is his senior year (He is one year ahead), so I do not think it will happen (too full of a calendar already).

advice to you two
1) Read the book I recommend to my son. You can DM me your thoughts. Not everything is gospel but there is value.
2) Learn how to repair things.
3) Learn about money, COC, ROI, ROE, unrealized capital gains (I have legally never paid tax on my RE capital gains and never plan to). This will be beneficial regardless of what facet of RE you choose.

Good luck

Excellent advice- definitely read the book and also Think and grow Rich. You have shown great maturity and drive. These books will give you added depth to your knowledge base and I believe will increase your drive!

Good luck!

@Herman Ruiz Herman, the good thing is that you are in the right place. First thing first, learn about Discipline. This is one key needed to be successful in Real Estate Investing [REI] or any entrepreneurial venture. YouTube Discipline and find talks from people such as Jim Rohn, Brian Tracy, and Les Brown.

  1. BOOKS: Rich Dad Poor Dad, Cash Flow Quadrant, Think & Grow Rich, The Richest Man in Babylon. 
  2. GAME: Trade your PS4 or Xbox for the CashFlow Game (buy the board game, not downloaded from App Store lol).
  3. EXPERIENCE: Go work with an established RE Investor FOR FREE, of course. 

When you are done with the above, you should be around 18 - 20 years old, and if you still care about REI, then you can commit to it for the long haul. If not, you won't even remember your BP login details

If you choose this path, then stay close to the BP community! Good luck and I am here to help you in any way I can 🤗

Just having focus at your age is great. Learn about businesses. If you know someone who owns their own business see if you can't work for them part time. Pay particular attention to how they manage people, scheduling, money etc. 

Around here, it is hard to get a job in construction until you turn 18. Even if you don't plan to do your own work you should understand the process. Even helping someone work on their own house will give you valuable knowledge.

Business classes. I spent 2 years in a great small business program through the Small Business Development office. They are often affiliated with a community college but I have also seen them with the local economic opportunity organization. Doing work and running your own business are two different things.

If you go to college, major in business-finance or accounting can be a good backbone to any business. I utilize my knack for numbers and process attained from spending most of my adult life as an accountant which led to being a cost analyst. Business law and contract experience also helps so take those classes instead of outdoor activities (hey, I only took that once).

Be frugal. I think the biggest mistake a lot of people make is they spend like crazy then realize they really didn't get anything of value and now regret it. The book Your Money or Your Life may help you create a healthy relationship with money. I once met an investor who was very focused. In our area, a lot of young men go to Alaska to fish. It is dangerous and hard work but pays well. Instead of spending his money on stuff, he saved it all and came home to Washington. He then bought a run down apartment building, moved in to the worst unit and spent the months he wasn't fishing rehabbing the apartment. When I met him a few years ago he was flipping a house near me but also rented about 100 doors. He even still periodically fished (he was in his mid 40s).

Take good care of your health. You need to have the stamina to keep up with this crazy life.

Always be learning. I'm 53 and still learning.

Good luck!

Originally posted by @Herman Ruiz :

I just turned 16 and want to learn as much as I can about the real estate world before I get into it. I’m currently saving money so when I’m of age I’ll be able to go right in, what are some things I should focus on learning now . I plan and becoming a landlord as well as flip houses later down the road. Anything helps thanks

 Welcome to the site Herman. Soak up as much knowledge now and if I were you i'd grab myself a real estate license the moment I turned 18. Great way for you to keep learning the business while making contracts with other investors and saving up money for your own investments.

Everyone has great book recommendations.  While you're on a roll, pop into the FIRE community so you can retire by the time you're 30 and then go live your dreams.  Some books along that path are;

Your Money or Your Life

The Simple Path to Wealth

Set for Life

I will DM you a link.

- JM

All:

This is good advice for young or old!  Who wrote Your Money or your Life?  I am looking on Amazon and I see Matthew Moore and Vicki Robin...

Have fun for the next six or seven years. You only get one go around. Enjoy it. Don’t miss out on fun stuff to make a few bucks. Unpopular opinion buuuut.... I know too many people that have regretted getting into adult worlds/problems prematurely.

@Herman Ruiz congratulations on setting your goals. First thing is to read a lot of books. “Rental property investing “ is a great book to start out with. Also you can start going to meetups in your area for real estate investing. The more you hang around investors, landlords and realtors the better you will understand. It’s going to take years to understand what is going on. Remember you are starting a business and not a hobby. Get your realtors license when you turn 18 and you can do ANYTHING that you put your mind to. Good luck my friend.