I got all these people saying they'll call me back and then they don't because they really just weren't interested. They see that I'm 20 years old and I'm broke. They see that I don't know as much. They feel safer with people who are already in the game. I own a few rentals now and I'm looking to do my first BRRRR but it's hard to get creative financing because I can't find a private lender willing to fund the whole deal. I just can't wait to get rolling. Because I'm gonna make it a priority to help beginners out whenever there's an opportunity. Like I will actually teach them to do it themselves so then hopefully I can make a lot of money with them in the future. As they would make a lot of money off me as well. Like, isn't that what it's all about? Helping each other? Just a little beginner frustration rant for you there. If you're struggling with this, I feel you. Let's do some business.
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
4y
I'm 50 years old, have a large commercial transaction in process, and can't get my attorney to call me back. It's par for the course...real estate is a messy business. I hear story after story about how people hate their W-2 jobs and want to do real estate full time. Well, in my W-2 job, people show up on time, return calls and emails same day, and do what they say they are going to do; otherwise, they get fired (and probably go into real estate...). Real estate is so different.
Keep at it...seems like you are already experiencing great success at an age where most of us knew nothing about REI.
Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 957 votes
4y
@Nate White if you have a few rentals and you're broke, what's happening there? And a few (3) rentals is a good track record to flaunt.
A lot of people like to deal with "polish" in real estate and finance, and while I don't know what you sound like in person or on the phone, perhaps there is some issue in presenting yourself?
Also, and most importantly, a lot of people are either full of ****, or scared shitless to actually put up and take the risk in investing with anyone. Real estate is a numbers game, so you gotta keep reaching out, making connections, and managing your own expectations.
Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
4y
You’re 20 years old and “only” own a few rentals? What a loser.
Ok, just kidding, @Nate White. With this proven success, you’re someone I bet most here would want to meet. I know I would. Don’t feel bad. I’m a lot older than you and no one calls me back either. Ha.
I read my current favorite saying here recently, “When it’s all said and done, there’s a lot more said, than done.”
Don’t take it personally. No one is blowing you off. It’s the nature of the business and has nothing to do with you. With so few barriers to entry, there’s a lot of faking it ‘till you make it in this industry and a lot of waist-high BS. You seem to be figuring that out.
@Scott Wolf asked some good questions and made some good points. If you already have a few rentals at the age of 20, I bet you’re smart and present yourself well. Instead of worrying about who you meet, perhaps instead consider how you meet them. Face-to-face at real estate clubs, or office meetings, will provide the greatest first impression than online, if that’s what you are doing. Not as efficient, but it’s very easy to promise the world to someone you haven’t met compared to looking them in the eye.
“They see that I'm 20 years old and I'm broke. They see that I don't know as much. They feel safer with people who are already in the game.”
You don’t know that any of this is true, Nate. How does anyone know you are 20 years old and broke unless you say something? You’re already in the game and at a point I bet most investors here wished they were at when they were your age. Don’t judge yourself or make assumptions about what you think others might know or believe about you. You have a track record now.
“I just can't wait to get rolling.”
You own a few rentals at 20 and can’t wait to get rolling???? What exactly is rolling to you?
You’re doing well, Nate. Don’t be so tough on yourself.
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
4y
I'm 50 years old, have a large commercial transaction in process, and can't get my attorney to call me back. It's par for the course...real estate is a messy business. I hear story after story about how people hate their W-2 jobs and want to do real estate full time. Well, in my W-2 job, people show up on time, return calls and emails same day, and do what they say they are going to do; otherwise, they get fired (and probably go into real estate...). Real estate is so different.
Keep at it...seems like you are already experiencing great success at an age where most of us knew nothing about REI.
Real Estate Consultant · USA · Member since 2014 · 1k+ posts · 751 votes
4y
@Nate White It's numbers game. You have to talk to a lot of investors no matter what age. I interview someone once who did 1,000 flips while in his 20's so age isn't an issue. Make sure you represent yourself as an experienced investor. In fact, they should see you as a real go-getter. Make sure you have a well-polished pitch deck. Spend about 90% of your time looking for investors and 10% of your time looking for deals. And you should be looking at short-term income-producing strategies like fix and flips and wholesaling.
If it were easy everybody be doing it successfully. At 20 you have very little life experience, you have only been legal adult age for 2 years, you're still not old enough to buy a drink, or buy a pistol in some states, not old enough to rent a car, etc, etc etc
How long have you actually been working in the RE field?
Lender · Renton, WA · Member since 2018 · 215 posts · 216 votes
4y
Most private lenders want you to have some skin in the game. While you don't have cash to put down, you do have equity in your rentals, I presume. So one thing to consider is offering up a 2nd lien against one of your rentals to cross-collateralize with a new property. Some may not like that idea but some may appreciate the extra protection you are offering them on a new deal.
My suggestion would be to learn as much as you can about the process of funding a private loan and the ways lenders look to secure their loans and keep them safe. The more you can articulate that you know how to guide new private lenders through this process and that you are invested, as the borrower, in making sure their principal investment is secure, the stronger you will look to them as a serious real estate investor. You can offer things such as helping them to order a lender title policy to protect them as a lender. Or to add them as a mortgagee on your property insurance (also known as a insurance binder) so that they can get paid out through a claim should something happen to the property.
You should also use your age as lead-in with sellers for off market properties, when you are out there looking. Some younger investors I know use perceived "inexperience" and their young age to their advantage to negotiate seller financing because retiring landlords want to help out really hard working young investors like yourself. There are a couple podcasts from BP last month with Cody Davis and one with Christian Osgood where they talk about this. It's definitely a talk track that older and experienced investors can't utilize. They are masters at seller financing and then you may rely less on private money to fund your future deals.
Best of luck and keep trying! There are good people out in the REI world willing to help out and educate/support younger investors. You got this!
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
4y
Your title was “I just can’t wait until people take me serious.”
OK then stop waiting. 😎
I contracted a property today from a seller I never met in person. I wired earnest money to a title company out of the area I’ve never stepped foot in. I didn’t get to the stage overnight, but it didn’t happen by waiting for people to take me serious either.
I got all these people saying they'll call me back and then they don't because they really just weren't interested. They see that I'm 20 years old and I'm broke. They see that I don't know as much. They feel safer with people who are already in the game. I own a few rentals now and I'm looking to do my first BRRRR but it's hard to get creative financing because I can't find a private lender willing to fund the whole deal. I just can't wait to get rolling. Because I'm gonna make it a priority to help beginners out whenever there's an opportunity. Like I will actually teach them to do it themselves so then hopefully I can make a lot of money with them in the future. As they would make a lot of money off me as well. Like, isn't that what it's all about? Helping each other? Just a little beginner frustration rant for you there. If you're struggling with this, I feel you. Let's do some business.
At our brokerage we really value mentorship and always are helping each other out. If you are ever interested in coming in, let me know?
Look at it this way . . . Most of the people who blow you off probably aren't worth dealing with in the first place. They are doing you a favor by shining you off now instead of midway through a project when real money and time sensitive actions are at stake. Give your business to those who are willing to work for it.
If you're a DIY I would look at ways to increase value/equity in your current rentals. In your free time, read books, watch videos online, read these forums. Learning is constant and knowledge is power. Find ways to leverage your skills and what you do know into money. If you're a handyman, provide the best service possible in your area. You'd be surprised at the lack of customer service/business skills that general contractors/handymen have.
Find people in your area that might be in the same boat as you and partner up. If you do good construction/repair work partner up with an investor who relies on others to do work on their property. By yourself, you may not be taken seriously, but maybe your partner will be taken seriously or maybe you and your partner combined will be taken seriously. Be honest, do good work and bring value and people will want to work with you.