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Updated about 2 years ago, 10/11/2022
I'm 16 and my dad is willing to help me sign for investments.
My name is Jason Raynor, I'm 16 and currently live in North Carolina. I have right at $1,000 dollars and climbing set aside for investments. What are good options for someone my age and in my position? I understand how the market works and about the basics of financial IQ but I need someone to point me in the right direction. This is why I started my BiggerPockets account, so I can reach out to people who know the industry and that can help me build connections. I have decided this is and will be my future and I'm willing to take any advice. Thank you!
Jason,
Happy to connect! If you're trying to set a savings goal for a RE investment, I would talk with a lender (or multiple lenders, as some are better than others) in your area to see what numbers you'd need to hit as far as affording down payment, closing costs, monthly payments, etc. If you are looking at STR investments, city regulations and cap rates for certain buildings should be considered. I'm not sure what the east coast is like in terms of how they treat short-term rentals, but in Austin they have a licensing process within city limits. Just a couple thoughts, hopefully helpful! Feel free to reply with any other questions.
Tanner
I wouldn't start talking to lenders just yet. What I would do it dive deep into the BiggerPockets community and learn as much as you can before jumping into anything. Real estate is exciting but you really need to understand what you are doing. You can talk to lenders however they will not talk to you, they will be talking to your Dad. That's the reality of the situation. Great job saving up but continue to save that money for now.
Quote from @Trenton Miller:
I wouldn't start talking to lenders just yet. What I would do it dive deep into the BiggerPockets community and learn as much as you can before jumping into anything. Real estate is exciting but you really need to understand what you are doing. You can talk to lenders however they will not talk to you, they will be talking to your Dad. That's the reality of the situation. Great job saving up but continue to save that money for now.
As much as I agree with the statement, I started investing as a teenager. I purchased a 5 bed 3 bath home with a VA loan at 19 years old. I paid $4-5k or so upfront for closing costs and that was it! Of course, unless you joined the military you wouldn't have that benefit. BUT, even just being a couple years younger, you could still call lenders and ask them some questions. When I was still much younger, it's not like the lender said "can I ask your age?" then they turn away. Good lenders will still provide you tips and advice in which will help you. Worst case... you wasted 5 mins of their time, but they should be willing to help others. I will admit you can find those lenders right here in the forums. Feel free to message me if you want to talk!
Quote from @Jason Raynor:
My name is Jason Raynor, I'm 16 and currently live in North Carolina. I have right at $1,000 dollars and climbing set aside for investments. What are good options for someone my age and in my position? I understand how the market works and about the basics of financial IQ but I need someone to point me in the right direction. This is why I started my BiggerPockets account, so I can reach out to people who know the industry and that can help me build connections. I have decided this is and will be my future and I'm willing to take any advice. Thank you!
So you want to be "in this business", lets get more specific about this (and see if you are ready to BE in this Business.
[1] You have $1,000 set aside (good job--a mountain is built from individual grains of sand); so describe your 1st "Investment", not some pie in the sky, but the ONE you have committed to moving forward with.
[2] see #1 above.
Note: In Las Vegas tough guys call $1,000 a "Gee" (for a Grand = 1000) as in 1G or 100G's. Stewie made 7G's at the craps table.
Financial people call it a "kay", as in 1k, 2k, 500k, etc.. We need 200k for the downpayment on that.
Most people just say a Thousand. That car costs 86 thousand dollars.
So you have $1k for a down payment saved so far, most investments take 20% to 30% of the purchase price as a down payment (some take 3.5% of the purchase price as down payment--2,3,4 plexes where you live in one unit).
Good Luck!
Hi Jason - love to see your interest in real estate at such a young age... I first became interested in real estate around 16 as well. If I were you, here's what I would recommend. I would work towards growing that $1,000 to as much as you can because that money could be used as a marketing budget. While you're growing your budget, I would go to any BiggerPockets meetups that you can find and learn from those who have done it before. Learn and network.
Once you feel as though you've learned enough to analyze a deal, I would take the money you saved up and start a direct mail marketing campaign. Take your time, learn the ins and outs, figure out your target market, and send out mail. Both your budget and the quality of your mailing list will determine the number of responses/leads you receive.
If all goes according to plan and you get a strong lead, your networking comes into play. I would talk to the investors you've met (and trust), and ask if they have an interest in partnering with you. Tell them about the deal and know your numbers.
Investors are always looking for ways to make money, so if you can find a good lead, you will be compensated for those efforts.
I know a lot of people will tell you to wait and that you have time on your side, but as someone who is young and ambitious, that is probably not the most satisfying answer for you. But, I will say is that if you do decide to start marketing for deals, really dive in and learn everything you can. Real estate is very lucrative but also takes skill and a lot of knowledge. There's a chance you could spend your entire marketing budget and not get a single deal. If you're wanting to jump in, assess the risk, and take responsibility.
I hope this helped and I wish you the best of luck!
@Jason Raynor, you are awesome! That is so cool you want to get started in REI! Many of us got started young.
I agree with @Trenton Miller, there is a wealth of info on BP. There are so many ways to invest. It is possible, with $1k, or less. Be a sponge! Start learning about what is attractive to you in regards to REI. Allow yourself to be wrong, like maybe you think STRs are what you want to do BUT actually, when you learn about it, you realize you hate the idea of dealing with guests.
The best thing I did was pay for education - coaching and a mentor.
The next best thing I did was learn about market cycles.
Go to local REIA groups too!
What does your dad do and what are you two good at? (IE social media, carpentry, crunching numbers, etc.) It's always wise to get clear on what is and what isn't. Feel free to reach out.
P.S. I'm telling my son, who is 11 yrs, about you! :)
Hey @Jason Raynor! As a young beginner, your first step is to read this book from Bigger Pockets. www.biggerpockets.com/teen
It is specifically for teens who are exactly where you are right now - the beginning. This book is your launching point.
I am the author and have been a high school business teacher for 20 years. Let me know if you have any questions. Always happy to talk to beginners who are young like you!
Also, you should read The House Hacking Strategy (also a BP book) by @Craig Curelop.
Dan
Quote from @Dan Sheeks:
Hey @Jason Raynor! As a young beginner, your first step is to read this book from Bigger Pockets. www.biggerpockets.com/teen
It is specifically for teens who are exactly where you are right now - the beginning. This book is your launching point.
I am the author and have been a high school business teacher for 20 years. Let me know if you have any questions. Always happy to talk to beginners who are young like you!
Also, you should read The House Hacking Strategy (also a BP book) by @Craig Curelop.
Dan
I plan on buying a few books from there, Thanks
Quote from @Shiela R.:
@Jason Raynor, you are awesome! That is so cool you want to get started in REI! Many of us got started young.
I agree with @Trenton Miller, there is a wealth of info on BP. There are so many ways to invest. It is possible, with $1k, or less. Be a sponge! Start learning about what is attractive to you in regards to REI. Allow yourself to be wrong, like maybe you think STRs are what you want to do BUT actually, when you learn about it, you realize you hate the idea of dealing with guests.
The best thing I did was pay for education - coaching and a mentor.
The next best thing I did was learn about market cycles.
Go to local REIA groups too!
What does your dad do and what are you two good at? (IE social media, carpentry, crunching numbers, etc.) It's always wise to get clear on what is and what isn't. Feel free to reach out.
P.S. I'm telling my son, who is 11 yrs, about you! :)