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Updated 5 days ago on . Most recent reply

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Isaiah Nieto
  • Kansas City, MO
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Saving Initial Capital

Isaiah Nieto
  • Kansas City, MO
Posted

Hi everyone, I am still learning real estate investors' terminology so bear with me. A little bit about me: I am 21 years old and immersing myself in as much knowledge about this field that I can. I will graduate from college this upcoming May and will move back to Kansas City, MO, and will most likely start working for a wealth management firm. Mind you, I'd much rather do this type of investing than that job. However, I know that I will be able to combine the earnings on both and invest in my future wisely. 

I'm in the process of reading many books about real estate investing before I get too ahead of myself as a natural "go-getter." Some of the authors of the books include Brandon Turner, David Greene, Benjamin Graham, and some others. I want to soak in as much knowledge as possible so I can have a grasp on what I'm doing when I start actually investing. 

Just a few questions...

I'm wondering how much I need to save in order to start investing. Like a ballpark number. I know it depends on where I want to invest, so I'm asking for clarity on what number is probably too low and what is just right. The two potential locations I could invest in the real estate market are Tulsa, OK and Kansas City, MO. I am focusing solely on saving at the moment because I still have one more year of college as a finance major and need to be smart before I dive into this venture head first. 

Is saving the only option to get the initial capital to start investing? What about going the direction of a house flip and connecting with a hard money lender and even making a little bit of cash that way to save? How did you first start investing and was it all solely from savings? I know I'm young and I tend to want things faster than they come, but I also want to know if there's any other way that I can be proactive in bringing in more cash for my first investment if possible. 

Once I do get that initial capital saved, which investment method would you recommend for me? House hack? Flipping a house first? This is very subjective, but I want to learn as much as I can!

Most Popular Reply

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Bryce Jamison
#1 Starting Out Contributor
  • Rental Property Investor
  • Mebane, NC
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Bryce Jamison
#1 Starting Out Contributor
  • Rental Property Investor
  • Mebane, NC
Replied

If you buy a primary residence to house hack you can put as little as 3-3.5% down.

Aside from saving the money yourself, you could put a few hundred dollars into getting your license, then use your commission from the sale as your down payment. You could partner with other folks using their cash and your effort to make deal work. The problem with that method is typically it's the skilled investors with long track records that people are willing to give money to and be a silent partner as opposed to people new to the industry.

If I may offer some unsolicited advise, if you ask shorter, more concise questions in the forums you'll get more responses. You asked a lot and I barley scratched the service. A 6 month deep dive into the BP books and podcast can help provide a road map for getting started.

  • Bryce Jamison
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