What would you do if you were 19 again?
Rental Property Investor · El Paso, TX · Member since 2015 · 33 posts · 9 votes
What would you do if you were 19 again?
How would you invest?
Where would you start?
I would have bought micro soft , apple , and berkshire hathaway
I joined the Navy at 19, and was stationed in Japan for my first duty station.
If I could turn back the hands of time I would first NO SPEND SO MUCH DAMN MONEY ON CLOTHES!! When I first got to Japan I was saving about 500.00 a month and by the time I went home I had about 3k in my savings. That was the largest amount of money I had ever had, and I had NO CLUE with that to do with it except.....buy clothes with it :-)
Just in general I would have been a bit more frugal when it came to my finances and learned the power of a budget, and paying bills on time.
I would of also invested in my own dreams instead of funding other peoples.
Dang, I could use $3k right now. Same situation with me, except I never went into the Navy. I wish to have been more frugal in my first years of working. Sure it wasn't much, but if I would have saved all I could, I would be somewhere today. Probably investing, maybe owned a property or two
If I were 19 again, I would continue my higher education (college) as fast as possible. Work as much as I could part time, weekends and side jobs. Save save save every penny that came my way and every windfall (tax refund, birthday money). Make a plan for purchasing my first rental property instead of a car. Learn as much as I could about RE investing from peers and school. Research properties in my area, talk to a mortgage broker about purchasing a property and check my credit report monthly and increase my credit as much as possible.
That's exactly what I'm doing right now! Raising credit, school, save save save! I bought a car though... so that's $300/month gone
Don't just "pay off" the car, sell it if you can. Are you upside down on it? If so, can you become an uBer or Lyft driver so the car pays for itself? If you're in TX, you should be able to trade that for what we used to call a "whoopty." Seriously, if you're 19, want to invest in real estate and have minimal capital, you shouldn't be spending $300 a month on a car.
If I could do it again, I would do most things the same, but purchase a 2-4-unit with FHA financing near my campus and rent out the other bedroom(s) in my unit. My last two years, I worked a full-time job, a part-time job and went to college full-time. My work ethic was solid and while I missed some parties here and there, I still had plenty of time to enjoy the college life. My sophomore year, I was an RA (free room & board) so I had experience managing "tenants" and I guess this was my precursor to being a landlord.
What I would do differently is savor those moments and not waste so much time laying on the couch watching TV or playing video games. I wouldn't necessarily spend that time investing or working, but just optimizing memories.
Don't be in such a rush to grow up and have the responsibilities that come after being young, but continue to seek out advice and mentors who can help guide you to achieve your goals.
If I were 19 again, I would continue my higher education (college) as fast as possible. Work as much as I could part time, weekends and side jobs. Save save save every penny that came my way and every windfall (tax refund, birthday money). Make a plan for purchasing my first rental property instead of a car. Learn as much as I could about RE investing from peers and school. Research properties in my area, talk to a mortgage broker about purchasing a property and check my credit report monthly and increase my credit as much as possible.
That's exactly what I'm doing right now! Raising credit, school, save save save! I bought a car though... so that's $300/month gone
Don't just "pay off" the car, sell it if you can. Are you upside down on it? If so, can you become an uBer or Lyft driver so the car pays for itself? If you're in TX, you should be able to trade that for what we used to call a "whoopty." Seriously, if you're 19, want to invest in real estate and have minimal capital, you shouldn't be spending $300 a month on a car.
If I could do it again, I would do most things the same, but purchase a 2-4-unit with FHA financing near my campus and rent out the other bedroom(s) in my unit. My last two years, I worked a full-time job, a part-time job and went to college full-time. My work ethic was solid and while I missed some parties here and there, I still had plenty of time to enjoy the college life. My sophomore year, I was an RA (free room & board) so I had experience managing "tenants" and I guess this was my precursor to being a landlord.
What I would do differently is savor those moments and not waste so much time laying on the couch watching TV or playing video games. I wouldn't necessarily spend that time investing or working, but just optimizing memories.
Don't be in such a rush to grow up and have the responsibilities that come after being young, but continue to seek out advice and mentors who can help guide you to achieve your goals.
Yeah, I just bought it 4 months ago. I owe $18,000 and I was offered $15,000 for it. I applied for UBER, but I have to be 21. At the time I bought the car, I was still unsure of what I was doing with life. I wasn't aware that REI was even a thing.
I went to college, worked hard, played hard, and had a great time while still taking care of business. When I graduated I landed my "dream job" ... after a few years the dream turned into a nightmare and I found out that what I went to school for and thought I wanted to do for the rest of my life was not at all what I was expecting and made me miserable. Things change, and when they do you move on and take your lessons with you. Expect them to change and don't paint yourself into any corners.
Things I did right: Mastered personal finance and saved up a sizable down payment. Bought a house that needed work, did the work myself, and then filled it with roommates to offset the mortgage. Saved up my next down payment with the roommate rents and living frugally so I did not have to sell my 1st place before buying my 2nd. Married a frugal woman who shared my values and enthusiasm for REI. Waited patiently through the bubble until the market crashed before buying my second, and third, and ...
Things I did wrong: Let my cost of living increase with my salary. Bought 1st place at retail price. Did renovations that I thought were cool (eg: Koi pond) rather than what added value in excess of what they cost. Rented to friends for below market rent. Tried to learn and do everything myself rather than finding a mentor. Hung out with people my age because they were fun to hang out with, not older mentors because I admired and wanted to become more like them. Chose my location based on the job, convenience, and family, rather than where was affordable and good for investments.
Your traditional Asian parents may not see the vision of REI yet (and may never), but I bet they would be all for you buying your primary residence. You'll likely need to finish college, get a job with W2 income, and save a down payment 1st. That doesn't mean that you can't still learn about REI as you finish your degree and get a job. Finance is a great choice. When you do buy your primary residence, buy it like an investor, not like a retail 1st time home buyer. Good luck!
I went to college, worked hard, played hard, and had a great time while still taking care of business. When I graduated I landed my "dream job" ... after a few years the dream turned into a nightmare and I found out that what I went to school for and thought I wanted to do for the rest of my life was not at all what I was expecting and made me miserable. Things change, and when they do you move on and take your lessons with you. Expect them to change and don't paint yourself into any corners.
Things I did right: Mastered personal finance and saved up a sizable down payment. Bought a house that needed work, did the work myself, and then filled it with roommates to offset the mortgage. Saved up my next down payment with the roommate rents and living frugally so I did not have to sell my 1st place before buying my 2nd. Married a frugal woman who shared my values and enthusiasm for REI. Waited patiently through the bubble until the market crashed before buying my second, and third, and ...
Things I did wrong: Let my cost of living increase with my salary. Bought 1st place at retail price. Did renovations that I thought were cool (eg: Koi pond) rather than what added value in excess of what they cost. Rented to friends for below market rent. Tried to learn and do everything myself rather than finding a mentor. Hung out with people my age because they were fun to hang out with, not older mentors because I admired and wanted to become more like them. Chose my location based on the job, convenience, and family, rather than where was affordable and good for investments.
Your traditional Asian parents may not see the vision of REI yet (and may never), but I bet they would be all for you buying your primary residence. You'll likely need to finish college, get a job with W2 income, and save a down payment 1st. That doesn't mean that you can't still learn about REI as you finish your degree and get a job. Finance is a great choice. When you do buy your primary residence, buy it like an investor, not like a retail 1st time home buyer. Good luck!
Thank you. I would like to hear more stories and experiences you've had, I'm all open ears! I'm 100% interested in what you have to share. You're beginning: how you started, where you started, your thoughts, concerns, barriers you had to get over. And is there not a rule stating strictly no renting to friends and family? Haha, I have to be honest, I have considered it, I'd charge them the regular cost of rent, but I knew they'd ask for a discount that I wouldn't be able to deny (I would just feel really bad and guilty if I didn't. Like I was using them as cash cows or something). After asking around about my whole college situation, I have decided that, yes, I am going to go through with my education, and most likely continue into grad school. I just enjoy this subject so much that I don't really ever see it as "work." All this learning and discussing and possibly volunteering, I don't see it as work. And I think that is what's going to get me to the top. Ever since I stepped into REI, I've been happier with life! It wasn't the same with computer engineering, I developed a liking, but it wasn't to this degree.
I do hope to bring this up to my parents, and soon, because I'm on the verge of getting kicked out (different story for a different day). How should I present this dream of mine to them? I want to show them that I know what I'm talking about. I know that at the moment, I know very little about the subject, but I want to convince them that I can be successful in this field. I want them to see my dedication, my determination to make this work! "He has potential" is what I want them to think. It would would help out immensely if I got them to get them to that point.
Hey Miguel.
I find a lot of similar things with you. I am 23 years old, I'm working on my last year of Computer science bsc, and way more excited about learning economics etc. On the other hand I'm already working as a fully time software engineer so my savings are growing. I'm wondering how you want to buy 3 properties in a year, because I only fantasize about start buying properties and probably start at 2016 year, but maybe will manage to buy 1.
I wonder how did you do your math or see the way it is happening.
Hey Miguel.
I find a lot of similar things with you. I am 23 years old, I'm working on my last year of Computer science bsc, and way more excited about learning economics etc. On the other hand I'm already working as a fully time software engineer so my savings are growing. I'm wondering how you want to buy 3 properties in a year, because I only fantasize about start buying properties and probably start at 2016 year, but maybe will manage to buy 1.
I wonder how did you do your math or see the way it is happening.
That's the thing. It's not that I want to own 3 properties, I'm going to own 3 properties. I have to hold myself to that if I'm going to make it big. I have to find ways to get to that goal. If the numbers don't make sense, I'll find a way to make them make sense. If funds are the problem, then I work harder. I will bust my butt to get where I need to go. If it requires a 2nd or third job, then I'm applying. Once I get that first property, I'm going to be up and running.
And when I talk to people about real estate they think I'm crazy.
I like your spirit. Keep updating the forum so maybe if and when you manage to get whatever, some of us will have the guts to leave their job :) .
If your parents are forcing you to go to college and you are not ready to take them up on their alternative of moving out, try switching your major to something to do with real estate. Also you can look into wholesaling real estate, you dont need much money or credit to do that.
I would have opened a ROTH IRA a lot sooner; however, Roth IRAs were not available when I was 19.
Work backwards. You will be old and tired one day and you will need income to sustain yourself.
At 19, one can not understand that life is short, but long enough to live.
At 19 today, you have infinite knowledge, and accessibility (thank you internet), you just don't have the experience to see the cycles of life. It's not so much knowing what you want, but shedding that which you don't.
Easy peasy :)
Sure thing ... feel free to PM me and I'll answer any questions you have and tell my story in gory detail, just don't want to bore everyone else in open forum. As for your parents, you may not see eye to eye, but understand that they have only your best interest in mind and at heart ... they have far more life experience than you do, so I'd listen to them with an open mind. It is true that you can't live your life to please them, but you should give serious consideration to what they have to say. I can relate in that I've done many things not necessarily because I wanted to but because they were "expected of me" and honestly, in retrospect I can say that many (but not all) of these things turned out to be very good advice. Also, now that I have kids, my parent's IQ has suddenly shot way up in my eyes :)
As for what you could say to convince them, it may be best to show them rather than tell them, and you can show them through your 1st primary residence, then one property at a time after that (read up on BP about "house hacking") ... this is a good strategy to start with anyway, regardless your parents.
Finally, understand that nobody in life gets to do 100% what they love and are passionate about 100% of the time, regardless of if you start with a traditional job or start your own REI company, there are going to be big sacrifices and times when you'll have to "suck it up" and do some things that aren't at all fun or fulfilling as a means to an end. There will be unforseen twists and turns and lots of bumps in the road ahead, guaranteed. So long as those things are getting you closer to your end goals. Feel free to reach out direct to discuss further if you like.
Hi Miguel,
First I would come down strongly in favor getting a college degree. It is the ticket to a decent W2 job, employer retirement plan, HEALTH CARE!!!, and if you take it seriously you will even learn a thing or two.
Second. Not to be too harsh, but try to really understand what a catastrophe that car payment is. Think of it as if you once owned 1, 2, or even 3 cash flowing properties and someone stole them from you. And you let them!
Third. What's one of the biggest assets you have right now? You are young, single, and totally surrounded by people who need to rent a room; i.e., college students. Your first "deal" could be signing a lease on a large house and renting out rooms. You'd get experience managing a property and live for cheap/free.
Hey Miguel,
This advice is coming from someone just around your age (21) but thought I'd share what I did. You definitely do not have to get a degree, much less in something useless that you don't want. I have a great job with an investment firm and don't have more than 1 year of college experience. However, if you do go to college, you should look into community college. Much cheaper. The 50k + debt of a regular university is not worth it.
You should also look into budgeting - my wife and I use the "envelope" system, and pay cash for almost everything. Save the debt for leverage in RE. Feel free to PM me with any questions, if you'd like (although I dont have much experience)
God bless,