First Moves to Generational Wealth

[Goanar Mar]

The bigger pockets community has been nothing but amazing for me thus far. I have not posted a whole lot but learned so much within the last 1-2 years from listening to podcast, reading books, and posts. For a while I’ve been in the analysis paralysis phase trying to figure out where I should start. I’ve completed the necessary requirements to obtain my real estate license and should be licensed within the next two weeks after everything is filed and processed.

A real estate license is not necessarily a must for someone that wants to invest in real estate, but I felt like it would be a great in for me to be around real estate and to learn the ropes. Along with obtaining my real estate license I’ve been working on increasing my credit score to pursue a house hack within the next few months. I graduate in May and thankfully to my athletic scholarship I will have no college debt to pay off. I 100% plan to get into commercial and multifamily investing in Minnesota then throughout the united Sates but getting there is the difficult part. Part of me feels as though I need to take my time and start with owning a duplex, triplex, or 4-plex while renting out the other units. This is attractive because it’s a slow game where I can use very low money down loans to slowly build wealth. Then eventually show investors what I’ve done at a small scale and ask to use their money to do this at a much bigger scale and give them a return. At the same time, I feel I can even start bigger, because over the years between life and basketball I’ve met some great wealthy individuals that would love nothing more than to help me while I also help them get a great return on their capital. My questions for anyone out there reading this post are do you have any good insights on being an investor friendly agent? Are there any investors in this area looking to get into or that own commercial and multifamily properties that would like to connect? I am also open to just anyone with open insight on where to go from here and hopefully I can add you some value to you as well!

[Evan Kraljic]

Congrats on already taking the initiative to get your real estate license! I would highly recommend doing a house hack to start out, especially if you plan to use your license to help investors. You can learn a lot from BP but the best experience you'll get is from buying that first house hack, and learning the market specifics of owning rental properties in Mpls/St. Paul which you can then pass on to your investor clients. Plus it sounds like you have the entrepreneurial spirit and want to get into real estate very soon, and househacking is great for that type of situation because ideally you will be greatly reducing your housing expense which can get you through lean months, which will be more likely when starting out a building up a client base/reputation. 

A big question would be do you plan to get a W2 in the field of your college major once graduating or no? If not then you likely wouldn't qualify for a househack, at least in the traditional sense of utilizing a low down payment and low interest rate 30 year fixed rate loan from Fannie/Freddie. There's plenty of other ways to buy real estate so you can still invest, I just think that loan product has the lowest barrier to entry and is how myself and many other investors got started. More tangible advice would be to speak to a loan officer where you'd like to buy a rental property ASAP, even if you can buy until May/June they will let you know any potential roadblocks they see that you can work on. There's a couple good ones I can recommend, @Tim Swierczek is one name you've probably come across since you've been on BP. 

My last advice is to join local investor groups, they give you a lot more market specific knowledge which is crucial once you've put in the work to self educate and learn the basics, so props there! I'm not sure I can promote facebook groups on here but the most active one is the Millennial Real Estate Investor Group which is MSP based and has ~3k/members in it. You can learn so much searching through the old posts in that group, I know I certainly did. It's a private group but I can send you an invite otherwise one of the admin @Alyssa Strom is fairly active on here.