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Updated over 2 years ago on . Most recent reply
Budding Real Estate Investor Seeking Advice
Hi, I'm Scott and I'm a pizza delivery driver/cool in Pelham, NH but also live in Lowell, MA. I realized a year into college that real estate investing was a career I wanted and would give me the freedom I want in my life. I'm 22 and have been working three years non-stop to save up money, gain as much real estate knowledge as I can (especially podcasts when I deliver food), and accustom myself to talking to others and being more open (as I was very introverted when I first started learning real estate). I've saved up a little over $30,000 and am unsure what first step I should take towards real estate investing. My thoughts are jumbled between finding a market first or getting approved for a loan first? And as a pizza delivery driver (or CDO, Chief Driving Officer, as my boss likes to call me) who works for tips how would I go about qualifying for a loan to show I can pay it? I want to bite the bullet that will get me going but I just wanted to ask for advice before I go any further. Thank you.
Most Popular Reply
I guess the first question is, how much would you actually qualify for? You have the down payment, but to qualify for a loan with a tipping job, i'd guess you'd need to have had it for one or two years and be reporting your tips (which almost no one does). Personally, if i found myself back at 22 years old with little money, I think what i would do is go into the skilled trades (electrician, plumber). They pay well and there's a shortage in New Hampshire. After a few years in a trade and after a few pay raises, you'd have the W2 income to easily qualify for a loan. Then you could get a house hack. Basically, i'd focus on increasing W2 income first. That's the slow and steady way of doing it, but i'd be ok with doing it slow and steady if i was 22. If there's one thing you have on your side it's time.
And yes, i know my advice is completely against the grain. Personally though, i think the power of time is underrated. Too many people out there are looking to get rich quick.