Best investments to make before Real Estate

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Best investments to make before Real Estate

Dan Baird
New to Real Estate · Longmont, CO · Member since 2026 · 3 posts · 1 vote

I am currently too young and don’t have enough money saved up to invest in real estate and was wondering what I should do to save up for my first real estate investment a little down the road?

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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 911 votes
1d
Quote from @Dan Baird:

I am currently too young and don’t have enough money saved up to invest in real estate and was wondering what I should do to save up for my first real estate investment a little down the road?

You’ve got time on your side, so I’d focus on building savings, improving your credit, and learning how to analyze deals before you’re ready to buy. Start following actual listings and run the numbers even if you can’t purchase yet. When the time comes, you’ll be way ahead because you’ll already know what a good deal looks like.

[email protected]614-418-6081
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  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    2d

    Smart to plan in advance. I would consider splitting in a high yield savings account and low fee total stock market index fund like VTSAX or SCHB. Stock market investing is generally more for long term but diversification is important and while safe, money won't grow much in HYSA. If you aren't already definitely maximize any retirement account options especially Roth IRA which outside an employer match is the best thing going in my non-financial professional opinion.

    1Reply
    • Dan Baird
      OP
      New to Real Estate · Longmont, CO · Member since 2026 · 3 posts · 1 vote
      2d

      Thanks for the help, I was considering opening a HYSA but I’m a little stuck on going with an online vs. a physical bank to open that account. Do you have an opinion on this?

      0Reply
    • Jules Aton
      MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
      1d

      I have both and no real preference. AMEX has a decent product and you can move funds easily.

      0Reply
  • Igor Ganapolsky
    Englewood, NJ · Member since 2018 · 461 posts · 84 votes
    2d

    dan the best investment you can make right now isn't actually in any account - it's in learning how real estate actually works before you put money into it. i buy properties at tax deed auctions in florida and i started with very little capital. the biggest edge i had wasn't money, it was understanding how to find deals and analyze them.

    that said, you do need some savings. a high yield savings account is a good place to park money you're accumulating for your first deal. online banks almost always pay better rates than physical banks because they don't have the overhead of branches. that's pretty much the only real difference. marco, ally, discover - they're all fine. just pick one with no fees and a competitive rate.

    but here's what i'd actually focus on: learn to analyze deals now, before you have the money. look at properties in your area, figure out what they rent for, what the taxes are, what insurance costs. run the numbers on paper. by the time you've saved enough to actually buy something, you'll already know how to spot a good deal vs. a money pit.

    and depending on where you are, there are ways to get into real estate with very little money. tax deed auctions, for example - you can pick up properties for just the back taxes owed. it takes knowledge more than capital. so keep saving, but also keep learning. both matter.

    1Reply
    • Dan Baird
      OP
      New to Real Estate · Longmont, CO · Member since 2026 · 3 posts · 1 vote
      2d

      Hey, thanks for the reply! I have been starting to read some blogs and listening to podcasts but haven’t found a whole lot that I really enjoy/that feel helpful. Do you have any recommendations?

      0Reply
  • Christopher Tile
    Accountant · Long Island, NY · Member since 2021 · 184 posts · 146 votes
    2d
    Quote from @Dan Baird:

    I am currently too young and don’t have enough money saved up to invest in real estate and was wondering what I should do to save up for my first real estate investment a little down the road?

    @Dan Baird Education! You'd be surprised how much you could learn in a single month if you locked in on some topics you are interested about. And the best part about it is, a lot of this stuff is FREE. The books you can buy that seem to serve beginner investors are worthless in my honest opinion. I'd just look to get the free info online.

    Simultaneously save your money. If you are working a job, I'd recommend contributing to a Roth IRA. Getting the max contributions in when you are young is extremely important! Plug in 7k in contributions starting at 18 vs 28 in a compound interest calculator, and you'll see what I mean!

    1Reply
  • Igor Ganapolsky
    Englewood, NJ · Member since 2018 · 461 posts · 84 votes
    2d

    for podcasts, the biggerpockets podcast is the obvious one and it's free. they've got hundreds of episodes so just start with the ones that match what you're curious about. the "best of" episodes are a good starting point.

    for reading, i'd skip most of the popular real estate books honestly. a lot of them are just motivational fluff. instead, go to your county's property appraiser website and start looking at actual properties. that's the best free education you can get. see what things sold for, what the taxes are, who owns them. it sounds boring but it's how you actually learn.

    if you want something more structured, there are some good youtube channels that walk through deal analysis. just search "how to analyze a rental property" and watch a few. the key is to then go do it yourself on paper with real properties in your area.

    the biggest mistake new investors make is consuming too much content and not actually looking at enough deals. aim to look at 5-10 properties a week on paper. after a month you'll start seeing patterns.

    1Reply
    • Neel Shah
      Member since 2025 · 2 posts · 0 votes
      11h

      @Igor Ganapolsky thank you sir! I've been looking for practical advise for a beginner like myself as well! This is so useful 

      0Reply
  • Matthew Tregoning
    Real Estate Consultant · Melbourne, FL · Member since 2019 · 205 posts · 113 votes
    1d

    You can learn a lot by helping someone who's already operating rentals. Turnovers, listing photos, coordinating repairs. Getting paid to see the messy side of the business would give you a much better starting point than just watching deal breakdowns.

    2Reply
  • Ryan SpathBusiness Member
    Real Estate Agent · Boise, ID · Member since 2017 · 557 posts · 376 votes
    1d

    For now focus on your education and network. There are tons of podcasts and youtube channels that can help you with this. Pick a lane and learn it. If you want to go multifamily 2-4 unit know your market and the data, be able to spot deals. The forums are a great place to ask questions and network, however there is nothing like going to an inperson meet up. Look on facebook and see what is happening in your market, start attending the meetups and ask questions. See if there is anyone you can add value to that is doing what you want to, and do things for them they do not want to in exchange for advise etc.

    [email protected]208-600-2814
    2Reply
    • Aaron BreckenridgePro Member
      Technology · Dallas, TX · Member since 2022 · 454 posts · 288 votes
      16h

      +1 to going to meetups. Not just one, but like at least 1-2 per month.

      BiggerPockets
      0Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    1d

    You can certainly learn through the options others have listed but investing into a skill that allows you to generate meaningful income that doesn't not require owning real estate is truthfully the best investment you can make because it opens the door to so many more real estate investment opportunities.

    [email protected]
    2Reply
    • Jules Aton
      MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
      1d

      Agree. I started with live in rehabs which I either sold or turned into LTR in my late 20s while I was working and continuing my education. RE was not my career. Over time my income far surpassed the number of rentals I would have any interest in managing. If you think RE is the gig you want to do full time that is ok also but keep an open mind. Finding something lucrative that you are good at and enjoy is a beautiful thing and it can include RE on the side.

      1Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 911 votes
    1d
    Quote from @Dan Baird:

    I am currently too young and don’t have enough money saved up to invest in real estate and was wondering what I should do to save up for my first real estate investment a little down the road?

    You’ve got time on your side, so I’d focus on building savings, improving your credit, and learning how to analyze deals before you’re ready to buy. Start following actual listings and run the numbers even if you can’t purchase yet. When the time comes, you’ll be way ahead because you’ll already know what a good deal looks like.

    [email protected]614-418-6081
    2Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    16h

    OP you’re the perfect age.

    1. Start learning

    2. Do some Habitat for humanity projects.

    3. All the maintenance at your house get involved with.

    4. Go to some local real estate meetups. Get a part time job with an investor.

    5. Your first investment will be your own housing when you leave home. Start looking at those angles.

    2Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 188 posts · 55 votes
    9h

    @Dan Baird Being young and not yet having enough saved is not a disadvantage—it gives you time to build a strong financial foundation before taking on a property. Start by setting a specific savings target that includes the down payment, closing costs, initial repairs, and a separate emergency reserve. Automating monthly contributions to a dedicated account, increasing income where possible, and avoiding high-interest debt can make steady progress more realistic.

    Use the time to learn how to evaluate deals, understand financing options, study the expenses landlords often underestimate, and follow the market where you may eventually invest. Building good credit, reviewing real listings, and practicing the numbers on potential properties will help you recognize a sound opportunity later. There is no need to rush or buy simply to get started; the goal is to be financially prepared enough that the first investment creates options rather than stress. Consistent saving and learning now can put you in a much stronger position when the right opportunity arrives.

    [email protected]
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  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    2h

    @Dan Baird equipment is the best thing for you to invest in right now. 

    If you are younger than 16 then buy a lawnmower, stump grinder, or power washer. Go around the neighborhood and find people close that you can sell your services to. As soon as you turn 16, buy a used truck for 5k. Use the truck to expat your reach for those services. Add those services to Facebook marketplace. By the time you are 18 you should have $10,000 - 20,000 which depending on where you live could be enough for a BRRRR deal that you can house hack.

    See about getting on to some of your parents credit cards to give your credit a boost. This will help you get a DSCR loan.

    Also you're already old enough to be a part owner in real estate. My kids all own priories in LLCs with me. The are 8 years old to 21 years old and they own 12 houses among them. 

    480-206-1209Podcast Guest on Show #287
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  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    2h

    I work with a lot of younger clients. You really do not need much down payment assuming you do a house hack. To get yourself set up right, focus on building the skills to get a high paying job so that you can quickly qualify to buy a house hack and then repeat again in a year or two to build a portfolio.

    0Reply
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